DTN Midday Grain Comments 07/03 10:58

DTN Midday Grain Comments 07/03 10:58 Grain Futures Higher Midday Monday Corn trade is 2 to 3 cents higher, beans are 24 to 28 cents higher and wheat trade is flat to 18 cents higher. The U.S. stock market is mixed with the S&P unchanged. The U.S. Dollar Index is 0.05 higher. Interest rate products are mostly weaker. Energies are mostly lower with crude $0.10 higher and natural gas off $0.10. Livestock trade is mostly higher. Precious metals are firmer with gold up $5.50. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 2 to 3 cents higher, beans are 24 to 28 cents higher and wheat trade is flat to 18 cents higher. The U.S. stock market is mixed with the S&P unchanged. The U.S. Dollar Index is 0.05 higher. Interest rate products are mostly weaker. Energies are mostly lower with crude $0.10 higher and natural gas off $0.10. Livestock trade is mostly higher. Precious metals are firmer with gold up $5.50. CORN: Corn trade is 2 to 3 cents higher at midday Monday with two-sided action so far as grains try to follow soybeans higher as we continue to digest Friday's report, as well as further weather developments with more weekend rains in the Corn Belt and lower near-term temps. Ethanol margins will improve coming forward, with the potential for blender margins to be boosted a bunch as well. The daily wire is expected to remain quiet with weekly export inspections soft at 642,900 metric tons. Basis will likely stabilize with the board pullback and tighter stocks. The second crop in Brazil will continue to see harvest push forward. On the stocks and acres report Friday, corn acres were 94.096 million versus 91.996 in March, with stocks at 4.106 billion bushels versus 4.255 bb expected. Weekly crop progress is expected to show conditions stabilizing, with broader improvement not likely in full effect until next week with maturity in line with the five-year average. On the December chart, we have resistance at the 20-day moving average at $5.57, with the lower Bollinger Band at $4.86 as support with trade able to bounce off that area overnight. SOYBEANS: Soybean trade is 24 to 28 higher at midday on the November contract with stocks and acres coming in well below expectations at 83.505 million acres versus 87.505 in March with stocks at 496 million bushels versus 812 mb estimated, which helped buying build again overnight before fading a bit during the day session with meal losing momentum. Meal is $2.00 to $3.00 higher and oil is 1.80 cents to 2.00 cents higher. The daily wire will likely remain quiet for now with importers put on their back foot by the rally, with weekly export inspections in line with seasonal norms at 250,055 metric tons. Basis has turned a bit steadier with the rally, which should continue short term. Better rains are expected to continue short term with conditions stabilizing and development likely to stay just ahead of the five-year average. November chart resistance is the upper Bollinger Band at $14.09 with the 20-day at $12.75 well below the market. WHEAT: Wheat trade is flat to 18 cents higher with KC and Minneapolis action leading as spreads remain steady to firmer with acres on the report coming in at 49.628 million for all wheat versus 49.855 in March, with stocks at 580 million bushels versus 611 million expected with mixed spillover action from row crops. Harvest should continue to expand on the Plains with some wheat areas to keep progress behind the five-year pace. Spring wheat conditions should stabilize and catch up to the five-year average or a little better on development. The dollar is cooling the recent rally but remains near the highs, and Matif wheat is slightly weaker so far. Weekly export inspections were lackluster at 336,349 metric tons. On the KC September Chart, the 20-day at $8.19 is resistance, which we have tested, with $8.00 the first nearby support area, which we bounced back above overnight. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.