DTN Midday Grain Comments     07/07 11:05

   Corn, Soybean, Wheat Futures Higher at Midday

   Corn futures are 7 to 8 cents higher at midday Thursday; soybean futures are 
29 to 31 cents higher; wheat futures are 30 to 38 cents higher. 

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn futures are 7 to 8 cents higher at midday Thursday; soybean futures are 
29 to 31 cents higher; wheat futures are 30 to 38 cents higher. The U.S. stock 
market is firmer with the DOW up 235 points. The U.S. Dollar Index is 2 points 
higher. Interest rate products are weaker. Energies are firmer with crude up 
5.65. Livestock trade is mixed with hogs leading. Precious metals are firmer 
with gold $3.50 higher.

CORN:

   Corn futures are 7 to 8 cents higher at midday with flat spread action and 
trade working to build on the reversal scored Wednesday with talk of further 
China stimulus and drier weather after the current systems move through, 
although we were unable to hold the early double-digit gains. As we push into 
pollination season, rains continue to work through the center of the Corn Belt 
short term, while normal temps and drier weather are expected for most the 
second week. USDA's weekly export sales report is delayed until Friday with the 
holiday Monday. Ethanol margins are still strong even with the pullback in corn 
offsetting the pullback in unleaded with the weekly report showing production 
down 7,000 barrels per day and stocks at 744,000 barrels. 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 $5.44, with the 20-day moving average well above the market at $6.83. 

SOYBEANS:

   Soybean futures are 29 to 31 cents higher at midday with trade rebounding 
towards Tuesday's gap area with slightly softer spread action and good product 
strength on optimism of renewed China demand along with the shifting forecast. 
Mea1 is $5.50 to $6.50 higher and oil is 260 to 275 points higher. 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 at this point; double crop is about done planting in the 
U.S. with the key reproductive time frame still a month off for most. 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 $14.33 with the gap at $14.95 the 
first level of resistance.

WHEAT:

   Wheat futures are 29 to 31 cents higher at midday with support from the row 
crops along with harvest pressure to continue fading with hotter weather in 
Continental Europe again as they press through harvest with trade near the 
highs at midday. Plains weather should allow for harvest to push quickly toward 
the homestretch for winter wheat. The dollar continues to hold in the upper end 
of the range with the strong ruble helping competitiveness as well with Russia 
expected to have near record supplies with other Black Sea supply and shipment 
remaining limited short term. The KC September chart has support at the fresh 
low at $8.32 1/2 scored Wednesday with the lower Bollinger Band at $8.22 and 
the 20-day moving average still well above the market at $10.36.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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