DTN Midday Grain Comments 07/22 10:56

DTN Midday Grain Comments 07/22 10:56 All Grains Higher at Midday Corn is 4 to 5 cents higher, soybeans are 2 to 3 cents higher, and wheat is 3 to 6 cents higher. David Fiala,DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 80 points. The dollar index is 25 points lower. Interest rate products are mostly higher. Energies are weaker with crude down $0.55. Livestock trade is mostly higher. Precious metals are mixed with gold up $14.00. CORN Corn trade is 4 to 5 cents higher at midday with trade finding light buying at the bottom of the range amid oversold conditions and little fresh corn specific news. The forecast is expected to remain non-threating for the most part through this week. The ethanol margins look to narrow coming forward with production edging lower by 23,000 barrels per day, while stocks were down by 807,700 barrels per day, keeping stocks at multi-year lows. 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 2 to 3 cents higher at midday with trade seeing two-sided action with another round of sales hitting the daily wire with 926,300 metric tons announced to China and unknown. Meal is $1.00 to $2.00 higher and oil is 25 to 35 points lower. Crush margins have been led by oil in recent days. The ral remains at the midpoint of the recent range vs. the dollar. Weather looks fairly non-threating near term with early podfill coming soon. The August chart now has support at the 20-day at $8.85 which we got back above last week, with the upper Bollinger Band at $9.09 as resistance. WHEAT Wheat trade is 3 to 6 cents higher at midday with support from the cheap dollar and little other fresh news as Northern Hemisphere harvest continues. The ruble remains in the recent range vs. the dollar though and Black Sea origin is still winning tenders with dollar needing to fall more before we see major excitement for U.S. bookings headed east. Kansas City is at an 85-cent discount to Chicago with spreads stabilizing, while Minneapolis is back to a 19 cent discount. Kansas City chart support is the $4.25 recent low, with the 20-day at $4.43 that we fell through Monday as resistance, which we are above at midday. 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.