DTN Midday Grain Comments 07/23 10:42

DTN Midday Grain Comments 07/23 10:42 Grain Futures Heading Lower Midday Friday Corn is 13 to 14 cents lower, soybeans are 7 to 10 cents lower and wheat is flat to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow up 250 points. The U.S. Dollar Index is 0.15 higher. Interest rate products are weaker. Energies are mixed with crude down $0.20. Livestock trade is flat. Precious metals are weaker with gold off $5.50. CORN: Corn trade is 13 to 14 cent lower at midday Friday with trade fading back to the lower end of the recent range with little fresh news to induce buyers into the weekend. Ethanol margins should stabilize with the corn pullback and energy rebound from the beginning of the week. Brazil will continue to evaluate the second crop as estimates drift lower, while the U.S. pushes deeper into pollination with a warmer and drier days ahead and potential relief the second week. Corn basis has remained flat with cash inverses likely to see more pressure as wheat and southern sorghum start to become available to feed. On the September contract, trade slipped back below the 20-day at $5.60 with further support at the lower Bollinger Band at $5.20. SOYBEANS: Soybeans are 7 to 10 cents lower at midday with trade working more sideways after the volatile day Thursday with some improvement in the extended forecast and meal still struggling to sustain a rally. Meal is $4.50 to $5.50 lower and oil is 0.30 cent to 0.40 cent higher. The weather pattern is warmer and drier short term, with rains towards the end of the second week for much of the belt. South America will continue to ship soybeans while the run in canola values turn more sideways. Basis levels have been flat to weaker in recent days. Mexico secured 100,000 metric tons of new crop on the daily wire. On the September soybean chart, support the 20-day at $13.64, which we are just below at midday, with the lower Bollinger Band at $12.85. WHEAT: Wheat trade is 1 to 10 cents lower at midday with spring wheat giving up early gains to turn lower again with KC gaining in spread action. Harvest will continue to expand across Europe and the Black Sea with mixed results so far while the dollar will provide headwinds at the upper end of the range with action consolidating around 93 points on the index. KC holds at 35-cent discount to Chicago narrowing Friday with Minneapolis at a 206-cent premium gaining 40 cents from the lows Thursday. KC September on the chart has support at the 20-day at $6.28 with resistance the upper Bollinger Band at $6.81. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.