DTN Midday Grain Comments 07/07 10:53

DTN Midday Grain Comments 07/07 10:53 Corn, Soybean Futures Lower at Midday; Wheat Mixed Corn trade is 6 to 8 cents lower at midday Friday; soybean futures are 11 to 14 cents lower and wheat trade is 9 cents lower to 2 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 6 to 8 cents lower at midday Friday; soybean futures are 11 to 14 cents lower and wheat trade is 9 cents lower to 2 cents higher. The U.S. stock market is mixed with the S&P up 5. The U.S. Dollar Index is 80 points lower. Interest rate products are mixed. Energies are firmer with crude .90 higher and natural gas up .05. Livestock trade is mixed with cattle leading. Precious metals are firmer with gold up 20.50. CORN: Corn futures are 6 to 8 cents lower at midday with December still working to build support above $5.00 after Thursday's rebound with action just below that area; spread action is slightly firmer. Ethanol margins should remain fairly stable with unleaded helping to hold some blender margin gains. The daily export wire saw 180,000 metric tons (mt) of corn sold to Mexico. Weekly export sales were still soft at 251,700 mt old crop and 418,000 new. Basis will continue to stabilize with the board pullback and tighter stocks with some areas firming again. The second crop in Brazil will continue to see harvest push forward, helping world availability. Rains look to be mixed in the short term with cooler temps with more questions in the second week and the heaviest rains looking to stay south. On the December chart we have first support at $5.00 nearby, which we are just below at midday, with the lower Bollinger Band at $4.78 as further support, while the 20-day moving average is well above the market at $5.51. SOYBEANS: Soybean futures are 11 to 14 cents lower with product action continuing to lose momentum and short term weather showing improvement. Trade is trying consolidate further above $13.00. Meal is $4.50 to $5.50 lower and oil is 30 to 40 points lower. Weekly export sales were soft at 187,800 mt old crop and 592,800 mt new; 148,800 old-crop meal and 33,000 new; -6,300 of oil. Basis has turned a bit more steady with the rally, which should continue in the short term. Better rains are expected to stay more south in the short term. Cooler short-term temps should support crop conditions as we wait for the next set of rains. November chart resistance is the Upper Bollinger Band at $14.13 with the 20-day moving average at $12.98, well below the market. WHEAT: Wheat futures are 9 cents lower to 2 cents higher with KC action the downside leader as spreads relax and world concerns ease for the moment as we work to consolidate action in the middle of the recent range heading toward the weekend. Plains harvest pace should pick back up into the weekend. The dollar is cooling its recent rally but remains near the highs and Matif wheat is weaker at midday. Weekly export sales showed improvement at 405,200 mt. On the KC September Chart, the 20-day moving average at $8.24 is first support, with the Upper Bollinger Band at $8.83 as resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.