DTN Midday Grain Comments 07/11 10:51

DTN Midday Grain Comments 07/11 10:51 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 1 to 2 cents higher at midday Tuesday; soybean futures are 7 to 9 cents higher; wheat futures are 6 to 10 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents higher at midday Tuesday; soybean futures are 7 to 9 cents higher; wheat futures are 6 to 10 cents higher. The U.S. stock market is firmer with the S&P up 10. The U.S. Dollar Index is 13 points lower. Interest rate products are firmer. Energies are firmer with crude 1.40 higher and natural gas up .05. Livestock trade is mostly higher. Precious metals are mixed with gold up 6.00. CORN: Corn futures are 1 to 2 cents higher at midday with trade pressing back to $5.00 on the December contract. Spread action is flat to firmer as we continue to position for the Wednesday WASDE report and digest condition scores with good to excellent improving, and poor to very poor staying flat. Further rains are expected for much of the Corn Belt in the short term with a bit warmer temps next week. Ethanol margins should remain fairly stable in the short term with a bit of an unleaded boost. Basis will continue to stabilize with the board pullback and another round of weakness is likely as we get closer to harvest. The second crop in Brazil will continue to see harvest push forward, helping world availability. Weekly crop progress showed 22% silking versus 21% on average, 3% in the dough versus 2% last year, with good to excellent 55% good to excellent, up 4%, and 14% poor to very poor, down 1%. On the WASDE report trade is looking for old-crop carryout at 1.421 billion bushels (bb), and new at 2.249 bb with yield at 176.1 bushels per acre (bpa). On the December chart we have support at the recent low of $4.85, while the 20-day moving average is well above the market at $5.48. SOYBEANS: Soybean futures are 7 to 9 cents higher at midday with firmer spread action as trade moves back toward the upper end of the range with little change on weekly conditions and with further position-squaring ahead of the report. Meal is 6.50 to 7.50 higher and oil is 40 to 50 points lower. Basis should remain mostly steady in the short term. Better rains are expected to stay more south in the short term with a bit more heat. Weekly crop progress showed 39% blooming versus 35% on average, 10% setting pods versus 7% on average with 51% good to excellent, up 1%, and 15% poor to very poor, unchanged. On the WASDE report, trade is looking for old-crop carryout at 233 million bushels (mb), new at 195 mb on yield of 51.2 bpa. November chart resistance is the Upper Bollinger Band at $14.05 with the 20-day moving average at $13.12, well below the market. WHEAT: Wheat futures are 6 to 10 cents higher with Chicago action leading after early spring wheat strength on conditions fading a bit more. In addition attacks on Ukraine ports add intrigue to the grain corridior talk. Northern Hemisphere harvest elsewhere should gain later this week with weather a bit drier for much of the U.S. spring wheat areas. The dollar is cooling the recent rally but remains near the highs, and Matif wheat is rebounding so far Tuesday. Weekly crop progress showed harvest at 46% versus 59% on average, and 40% good to excellent, and 28% poor to very poor, basically unchanged. Spring wheat was 47% good to excellent, down 1% and 16% poor to very poor, up 4%, and 72% headed versus 67% on average. On the WASDE report, trade is looking for domestic carryout at 568 mb with production at 1.682 bb. On the KC September Chart, the 20-day moving average at $8.25 is first resistance area, which we are tested overnight, with $8.00 as support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.