DTN Midday Grain Comments 07/12 10:44

DTN Midday Grain Comments 07/12 10:44 Soybean Futures are Higher at Midday; Corn Lower; Wheat Mixed Corn futures are 3 to 4 cents lower at midday Wednesday; soybean futures are 14 to 16 cents higher; wheat futures are 7 cents lower to 4 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents lower at midday Wednesday; soybean futures are 14 to 16 cents higher; wheat futures are 7 cents lower to 4 cents higher. The U.S. stock market is firmer with the S&P up 40. The U.S. Dollar Index is 100 points lower. Interest rate products are firmer. Energies are firmer with crude .75 higher and natural gas off .08. Livestock trade is firmer. Precious metals are firmer with gold up 22.00. CORN: Corn futures are 3 to 4 cents lower at midday in quiet pre-report action with flat spread trade with some rains working across the Western Corn Belt this morning and early strength fading again. 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 with the weekly report showing production down by 28,000 barrels per day (bpd), and stocks up by 398,000 barrels as travel demand dipped after July 4th. Basis will continue to stabilize with the board pullback with another round of weakness likely as we get closer to harvest. The second crop in Brazil will continue to see harvest push forward, helping world availability with some rains to slow harvest. 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 $5.45. SOYBEANS: Soybean futures are 14 to 16 cents higher at midday with trade back to the upper end of the range ahead of the report with meal leading the product complex this morning. Meal is 8.00 to 9.00 higher and oil is 30 to 40 points higher. The daily export wire saw 105,000 metric tons (mt) of new-crop soybeans sold to unknown destinations. 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. On the WASDE report, trade is looking for old-crop carryout at 233 million bushes (mb), new at 195 mb on yield of 51.2 bpa. November chart resistance is the Upper Bollinger Band at $14.03 with the 20-day moving average at $13.21, well below the market. WHEAT: Wheat futures are 7 cents lower to 4 cents higher with the slow harvest pace, grain corridor developments and mixed spring wheat weather keeping support in place in the middle of range pre-report. Northern Hemisphere harvest should gain later this week with weather a bit drier for much of the U.S. spring wheat areas. The dollar has faded to the lower end of the range with selling after the cooler-than-expected inflation numbers, and Matif wheat is bit lower so far. 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 $8.26 is first resistance area, which we 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.