DTN Midday Grain Comments 07/21 10:45

DTN Midday Grain Comments 07/21 10:45 Grain Futures in the Red Midday Friday Corn trade is 8 to 9 cents lower, beans are 5 to 6 cents lower and wheat trade is 17 to 27 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 8 to 9 cents lower, beans are 5 to 6 cents lower and wheat trade is 17 to 27 cents lower. The U.S. stock market is firmer with the S& P up 16. The U.S. Dollar Index is 0.20 higher. Interest rate products are firmer. Energies are mostly firmer with crude $0.80 higher and natural gas unchanged. Livestock trade is mixed. Precious metals are lower with gold off $8.50. CORN: Corn trade is 8 to 9 cents lower at midday Friday with broad ag weakness heading toward the weekend, with position squaring and profit taking likely to continue to the close as we wait for forecast development and clarity on Black Sea developments. Short-term weather has rain coverage slowing into next week with mild temps until Sunday, with the bigger concern being the second week heat, with trade watching to see how long it lasts and how dry it gets with ridge riding storms likely. Ethanol margins should get a boost from the corn pullback and unleaded staying elevated. The daily wire was quiet to close the week. 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 see support at the recent low at $4.81 scored last week, while the 20-day is below the market at $5.23 with the fresh high at $5.63 3/4 becoming resistance. SOYBEANS: Soybean trade is 5 to 6 cents lower at midday with the broad ag market weakness limiting soybeans, with some positive in the products adding support. Meal is $1.00 to $2.00 higher and oil is 0.40 cent to 0.60 cent higher. The daily wire has remained quiet to close the week with trade likely needing a correction for find new crop buying. 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 for most. November chart resistance is the upper Bollinger Band at $14.24, which we tested overnight with the 20-day at $13.45 below the market. WHEAT: Wheat trade is 17 to 27 cents lower at midday with Minneapolis action holding up the best so far, and KC spread action coming back versus Chicago after overnight weakness while trade works to consolidate levels after the volatile week with harvest pushing forward in the Northern Hemisphere and implications of Black Sea events still unclear. 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, but some rains will be around. The dollar is back above 100 on the index, and Matif wheat is sharply lower at midday. On the KC September Chart, the 20-day at $8.29 is the first support area with the fresh high at $8.91 resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.