DTN Midday Grain Comments 07/21 10:53

DTN Midday Grain Comments 07/21 10:53 Beans, Corn Lower at Midday Corn is 4 to 5 cents lower, soybeans are 5 to 6 cents lower, and wheat is 3 to 9 cents higher. David Fiala,DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 300 points. The dollar index is 50 points lower. Interest rate products are firmer. Energies are firmer with crude up $1.40. Livestock trade is mostly higher. Precious metals are firmer with gold up $24.00. CORN Corn trade is 4 to 5 cents lower with trade working back towards the low with early selling as rains move across much of the belt, along with steady conditions on the crop progress report. The forecast is expected to remain non-threatening for the most part through this week. The ethanol margins look to narrow coming forward with concerns about gasoline demand persisting. Weekly crop progress showed good to excellent at 69% good to excellent, and 8% poor to very poor, unchanged on the week, with silking 5% ahead of normal at 59% good to excellent, and 9% in the dough vs. 7% on average. On the daily wire, we saw 207,880 metric tons sold to unknown. On the September contract, trade continues to have resistance at the gap level from a week ago at $3.36, with the lower Bollinger Band at $3.15 as support. SOYBEANS Soybean trade is 5 to 6 cents lower at midday with trade pulling back from the upper end of the range overnight with light selling and little fresh news beyond fresh sales of 126,000 metric tons to China, and 180,000 metric tons to unknown. Meal is $2.00 to $3.00 lower and oil is 10 to 20 points higher. Crush margins remain fairly stable. The real remains at the midpoint of the recent range vs. the dollar. Weather looks fairly non-threatening near term with early podfill coming soon. Weekly export inspections remain soft at 452,811 metric tons, with good to excellent up 1% to 69% good to excellent, and 7% poor to very poor, with blooming at 64% vs. 57% on average, and 25% podding vs. 21% on average. The August chart now has support at the 20-day at $8.84 which we got back above last week, with the upper Bollinger Band at $9.09 as resistance. WHEAT Wheat trade is 3 to 9 cents higher at midday with trade trying to rebound from the selloff with support from fresh lows on the dollar. The ruble remains in the recent range vs. the dollar though and Black Sea origin is still winning tenders. U.S. harvest was 74% complete vs. 75% on average, with spring wheat 88% headed vs. 91% on average with 68% good to excellent, and 7% poor to very poor unchanged on the week. Kansas City is at an 88-cent discount to Chicago with spreads stabilizing, while Minneapolis is back to a 21 cent discount. Kansas City chart support is the $4.25 recent low, with the 20-day at $4.43, which we fell through today as resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2020 DTN, LLC. All rights reserved.