DTN Midday Grain Comments 07/05 10:55

DTN Midday Grain Comments 07/05 10:55 All Grains Higher at Midday Corn trade is 3 to 4 cents higher, beans are 6 to 7 cents higher and wheat trade is 9 to 14 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer at midday with the S&P 14 higher. The dollar index is 40 points lower. The interest rate products are firmer. Energy trade has crude $0.40 higher and natural gas $0.05 lower. Livestock trade is mostly higher. Precious metals are firmer with gold 20 higher. CORN: Corn is 3 to 4 cents higher at midday with light short covering in our limited Friday session with trade continuing to hold the lows set a week ago with oversold conditions easing and little fresh news. Ethanol margins remain steady with unleaded holding the upper end of the range. Cooler and wetter conditions are expected to transition to a bit warmer and drier into the second part of the month, which should benefit crop development. Basis action should remain sideways into midmonth. The daily export wire was quiet with weekly sales a bit disappointing at 357,200 metric tons of old crop, and 311,200 of new crop. On the September chart, the 20-day at $4.37 is resistance with the recent low at $3.99 1/2 as support. SOYBEANS: Soybeans are 6 to 7 cents higher at midday with early weakness turning back to buying with broad product strength with soyoil continuing its steep rally as it gets overbought. Meal is 4.50 to 5.50 higher, and oil is 80 to 90 points higher and closing back in on the 50 range. Near-term moisture should help crop development with warmer and drier weather to help the more saturated areas into midmonth. The daily wire was quiet with weekly sales in line with recent weeks at 228,400 metric tons of old crop, 150,300 metric tons of new, 212,900 metric tons of old meal, 288,600 of new meal and 16,500 of oil. Basis should remain mostly steady short term with support from spreads with some places going to bidding versus the November already. The September chart resistance is at the 20-day moving average at $11.28 with support at the lower Bollinger Band at $10.88. WHEAT: Wheat trade was 9 to 14 cents at midday with good buying as trade follows European values higher amid mixed crop size estimates for France and Russia and easing harvest pressure. Winter wheat harvest should continue to make broad progress pushing north while spring wheat will stay cooler and wetter for now. The dollar is back toward the middle of the range with more sustained downward momentum post job report, with MATIF wheat back to challenging nearby resistance. Weekly export sales were very strong at 805,300 metric tons. On the KC September chart, resistance is the 20-day at $6.17, with the fresh low at $5.76 as support. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.