DTN Midday Grain Comments     07/06 10:59

   Corn, Soybean, Wheat Futures Lower at Midday

   Corn futures are 7 to 8 cents lower at midday Wednesday; soybean futures are 
7 to 10 cents lower; wheat futures are 12 to 21 cents lower. 

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn futures are 7 to 8 cents lower at midday Wednesday; soybean futures are 
7 to 10 cents lower; wheat futures are 12 to 21 cents lower. The U.S. stock 
market is weaker with the DOW down 105 points. The U.S. Dollar Index is 60 
points higher. Interest rate products are weaker. Energies are weaker with 
crude down 2.90. Livestock trade is firmer with hogs leading. Precious metals 
are weaker with gold $26.00 lower.

CORN:

   Corn futures are 7 to 8 cents lower with early two-sided trade again turning 
to selling. Outside market spillover again leaned on trade and there is little 
fresh bullish news besides trade being deeply oversold. As we push into 
pollination season, rains look to be better for center of the Corn Belt, while 
warmer temps and less rain presses into the south and west growing areas with 
good rains and limited storm damage in some areas overnight. USDA's weekly Crop 
Progress report showed good to excellent down 3% to 64% and 9% poor to very 
poor, with silking at 7% versus 9% on average. Ethanol margins are still 
strong, even with the pullback in corn offsetting the pullback in unleaded. 
Basis will be watched to see if strength holds with spread action remaining 
firm. On the September chart, support is the fresh low at $5.82 with lower 
Bollinger Band just above that at $5.90 and the 20-day moving average well 
above the market at $6.98. 

SOYBEANS:

   Soybean futures are 7 to 10 cents lower with strong early gains fading again 
as fund liquidation continues, along with soyoil continuing to press into new 
lows. Mea1 is $4.00 to $5.00 higher and oil is 130 to 140 points lower. 
Biodiesel margins are very good at the moment, which should bolster crush 
recovery into fall with fresh capacity expected to come online then assuming 
the margin picture doesn't change significantly. South America is moving toward 
post-harvest footing. Double-crop acres are about planted in the U.S. The 
weekly crop progress report showed good to excellent down 2% to 63% and 9% poor 
to very poor, with 96% emerged, same as average, 16% blooming versus 22% on 
average, and 3% setting pods, same as average. Basis is fading a bit at 
processors and exporters in recent days with the daily export sales wire 
remaining quiet. On the August soybean chart, support is the fresh low at 
$14.24 with lower Bollinger Band at $14.35 with the gap at $14.95 the first 
level of resistance.

WHEAT:

   Wheat futures are 12 to 21 cents lower with good overnight strength 
evaporating again with harvest continuing as negative spillover from row crops 
and outside markets continue to spur selling. Plains weather should allow for 
harvest to continue moving with few areas slowed by rains as it moves further 
north. On USDA's Crop Progress report Tuesday, harvest is 54% complete versus 
48% on average, while the spring wheat conditions were 7% better at 66% good to 
excellent, and 7% poor to very poor, with 20% headed versus 57% on average. The 
dollar continues to hold in the upper end of the range with the strong ruble 
helping competitiveness as well. Russia is expected to have near record 
supplies with other Black Sea supplies diminished short term with trade waiting 
for the next set of import tenders. The KC September chart has support at the 
fresh low at $8.32 1/2 scored Wednesday morning with the lower Bollinger Band 
at $8.49 and the 20-day moving average still well above the market at $10.52.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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