DTN Midday Grain Comments 08/02 10:54

DTN Midday Grain Comments 08/02 10:54 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 5 to 7 cents lower at midday Wednesday; soybean futures are 17 to 19 cents lower; wheat futures are 7 to 21 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 7 cents lower at midday Wednesday; soybean futures are 17 to 19 cents lower; wheat futures are 7 to 21 cents lower. The U.S. stock market is weaker with the S&P off 55. The U.S. Dollar Index is 40 points higher. Interest rate products are weaker. Energies are weaker with crude 1.80 lower and natural gas off .08. Livestock trade is weaker. Precious metals are weaker with gold off 7.50. CORN: Corn futures are 5 to 7 cents lower at midday with post-port-attack gains evaporating during the day session. December corn is back to testing the $5.00 area. Short-term weather looks cooler into mid-August with mixed rain coverage to continue this week, helping take weather premium out of the market. Ethanol margins should remain solid in the near term with the weekly report showing production off by 27,000 barrels per day (bpd) and stocks down 360,000 barrels. Basis will likely fade further toward harvest. The second crop in Brazil should continue to press forward, harvest-wise. On the December chart, the 20-day moving average is above the market at $5.21, becoming resistance as we tested it overnight with the $5.00 area the next round down, which we have tested Wednesday morning. SOYBEANS: Soybean futures are 17 to 19 cents lower at midday with the cooler and wetter forecast turning the strong close and early overnight buying back to weakness; products are following suit. Meal is 4.50 to 5.50 lower and oil is flat to 20 points higher. Trade is looking for further new-crop demand after the strong recent run. Basis has softened a little bit as well. November chart resistance is the 20-day moving average at $13.73, which we fell below Tuesday, with the lower Bollinger Band at $13.05 below that. WHEAT: Wheat futures are 7 to 21 cents lower with trade giving back the premium put in after the fresh attack on Ukrainian Danube River ports. Trade is firmly in show-me mode on disruptions as we move toward oversold conditions. Winter wheat harvest is heading for the homestretch with spring wheat harvest likely to expand solidly this week. The dollar is back to the top of the recent range and Matif wheat is flat. On the KC September Chart, the 20-day moving average at $8.41 is well above the market with trade trying to find footing at the lower Bollinger Band at $7.68. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.