DTN Midday Grain Comments 07/20 10:48

DTN Midday Grain Comments 07/20 10:48 Corn, Soybean Futures Slightly Lower Midday Thursday Corn trade is 5 to 6 cents lower, beans are 1 to 2 cents lower and wheat trade is narrowly mixed. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 5 to 6 cents lower, beans are 1 to 2 cents lower and wheat trade is narrowly mixed. The U.S. stock market is mixed with the S&P off 12. The U.S. Dollar Index is 0.50 higher. Interest rate products are weaker. Energies are mixed with crude $0.10 higher and natural gas up $0.15. Livestock trade is firmer. Precious metals are mostly lower with gold off $8.50. CORN: Corn trade is 5 to 6 cents lower with active two-sided trade turning to weaker action during the day session as we continue to watch weather forecasts and Black Sea developments short term. Short-term weather has rain coverage slowing into next week with mild temps until Sunday with the bigger concern for the second week heat, with trade watching to see how long it last and how dry it gets. Ethanol margins should narrow with the corn strength and driving slowing down a little bit. The daily wire has remained quiet short term with weekly sales showing more life in the back months, with 236,800 metric tons sold of old crop, and 461,900 metric tons of new. Basis has remained fairly flat short term. The second crop in Brazil will continue to see harvest push forward helping world supplies short term. On the December chart, we have support at the recent low at $4.81 scored last week, while the 20-day is well below the market at $5.32 after we jumped above it Wednesday with the fresh high at $5.63 3/4 becoming resistance. SOYBEANS: Soybean trade is 1 to 2 cents lower at midday with trade working to consolidate further above $14.00 nearby with oil leading the products Thursday. Meal is $1.50 to $2.50 lower and oil is 1.28 cents higher. The daily wire has remained quiet with weekly sales improving for new crop with 127,000 metric tons of old crop, 760,300 of new; 272,500 of old meal, 135,300 of new, and -800 of oil. Basis should remain mostly steady short term. Trade will be watching the more extended forecasts into August to see how conditions go into podfill season with stress likely to increase next week. November chart resistance is the upper Bollinger Band at $14.24, which we tested overnight with the 20-day at $13.43 below the market. WHEAT: Wheat trade is narrowly mixed at midday with trade seeing broad two-sided trade so far with bouts of selling as trade continues to test the upper end of the recent range as we sort of the implications of the Black Sea developments, with Russia revealing that it has mined sea lanes along with the port attacks. 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 back above 100 on the index, and Matif wheat is flat today. Weekly export sales were soft at 170,700 metric tons. On the KC September Chart, the 20-day at $8.30 is the first support area, which we surged away from Thursday, with the fresh high at $8.91 becoming resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.