DTN Midday Grain Comments     08/05 10:49

   Corn, Soybeans Up Midday Thursday

   Corn is 8 to 13 cents higher, soybeans are 10 to 13 cents higher and wheat 
is 1 cent lower to 3 cents higher.

David M. Fiala
DTN Contributing Analyst

   MARKET SUMMARY:

   The U.S. stock market is firmer with the Dow up 195 points. The U.S. Dollar 
Index is 0.05 lower. Interest rate products are weaker. Energies are firmer 
with crude up $0.90. Livestock trade is weaker with hogs sharply lower. 
Precious metals are mixed with gold down $9.30.

   CORN:

   Corn trade is 8 to 13 cents higher with corn once again migrating back to 
the $5.50 area and then higher with stronger spread action helping to find 
buying. Ethanol margins will continue to see pressure with energies sliding 
along with the coming shift to cheaper fall blends, while corn remains 
rangebound. Brazil will continue to move along with the end of the second crop 
season and harvest to expand soon with export estimates being cut again. Corn 
basis continues to fade with cash inverses likely to see more pressure as early 
harvest gets going to the south. Weekly export sales showed improvement at 
68,200 metric tons of old crop and 830,200 of new crop. On the September 
contract, we have moved back above at $5.53 20-day moving average, which we 
went just below overnight with the upper Bollinger Band at $5.75 the next round 
up.

   SOYBEANS:

   Soybeans are 10 to 13 cents higher at midday with trade bouncing off support 
levels and little fresh news to move the market as we await further rains to 
push the crop into pod fill in many areas. Meal is $4.00 to $5.00 higher and 
oil is 0.10 cent to 20 cent higher. The weather pattern looks dry short term 
with better rains the second week. South America has a declining ship line up 
while the run in canola values turned more sideways, keeping a lid on oil 
values as well, along with crude oil weakness with meal still unable to sustain 
rallies. Basis levels have been flat to weaker in recent days. Weekly export 
sales improved at bit at 11,400 metric tons old crop and 424,800 of new, with 
meal at 135,400 old and 18,700 new, and oil at 3,200. On the September soybean 
chart, resistance is at the 20-day at $13.66, which we fell below last week, 
with the lower Bollinger Band at $13.19 as support with $13.00 below that.

   WHEAT:

   Wheat trade is 1 cent lower to 3 cents higher at midday with trade working 
to consolidate the upper end of the range short term with Minneapolis wheat the 
leader by a touch. The dollar has settled into a range around 92 points on the 
index, keeping currency input more neutral. The U.S. has pushed above world 
values, which should limit exports and upside short term, unless continental 
values can catch up further. KC holds at 27 cent-discount to Chicago, widening 
a bit with Minneapolis at a 183-cent premium fading back to the lower end of 
the range. Weekly export sales were a bit at softer at 308,300 metric tons. KC 
September on the chart has support at the 20-day at $6.55 with resistance the 
upper Bollinger Band at $7.16.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




(c) Copyright 2021 DTN, LLC. All rights reserved.