DTN Midday Grain Comments 07/19 11:00

DTN Midday Grain Comments 07/19 11:00 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 14 to 15 cents higher at midday Wednesday; soybean futures are 12 to 16 cents higher; wheat futures are 27 to 53 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 14 to 15 cents higher at midday Wednesday; soybean futures are 12 to 16 cents higher; wheat futures are 27 to 53 cents higher. The U.S. stock market is firmer with the S&P up 20. The U.S. Dollar Index is 40 point higher. Interest rate products are mixed. Energies are firmer with crude .70 higher and natural gas up .02. Livestock trade is weaker. Precious metals are weaker with gold off 1.50. CORN: Corn futures are 14 to 15 cents higher at midday with trade pushing through nearby resistance. Weather concerns next week continue to push action, along with Black Sea uncertainty as Russia announced plans to treat any ship heading to Ukraine as military targets. But we have faded off early session highs on long profit-taking. Short-term weather has rain coverage slowing a little this week with mild temps. The bigger concern is next week, continuing to show warmer and drier. Ethanol margins should narrow with the corn strength with the weekly report showing production up by 38,000 barrels per day (bpd), and stocks up by 508,000 barrels ahead of August maintenance season. Basis should remain flat to firmer in the near term. The second crop in Brazil will continue to see harvest push forward, helping world supplies in the short term. On the December chart, we have support at the recent low at $4.81 scored last week, while the 20-day moving average is well below the market at $5.32 after we jumped above it overnight with the fresh high at $5.63 3/4 becoming resistance. SOYBEANS: Soybean futures are 12 to 16 cents higher at midday with trade pressing back to fresh highs for the move. Weather concerns for next week and broad product strength along with spillover from grains contribute to the move. Meal is 2.00 to 3.00 lower and oil is 200 to 220 points higher. Basis should remain mostly steady in the short term. Trade will be watching the more extended forecasts into August to see how conditions go into pod-fill season with stress likely to increase next week. November chart resistance is the Upper Bollinger Band at $14.24, which we have tested this morning with the 20-day moving average at $13.43 below the market. WHEAT: Wheat futures are 27 to 53 cents higher following the lead of the row crops early on before action accelarated after the Russian statement about Black Sea shippin. Chicago action was briefly limit higher before seeing a little long profit-taking. Winter wheat harvest should pick up through the weekend to catch us up closer to pace with spring wheat headed for warmer and drier weather the second week. The dollar is holding below 100 on the index, and Matif wheat is sharply higher so far. On the KC September Chart, the 20-day moving average at $8.29 is the first resistance area, which we are pulling away from this morning, with the fresh high at $8.87 becoming resistance, with $7.92 as support, which we bounced from Thursday. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.