DTN Closing Grain Comments    07/14 13:50
   Wheat Rises on Black Sea Uncertainty Tuesday, While Corn and Soy Slip

   Corn and soybean futures relaxed on Tuesday with bullish momentum slowly
deflating through Monday's session and giving way to follow-through selling on
Tuesday. U.S. weather remains supportive on paper, though at this point given
Monday's improved USDA crop ratings traders may feel they've adequately priced
in preemptive risk to crops at this stage and will wait for the next round of
ratings after the heat spell to gauge if any damage has been done. Wheat
futures held on a test of chart support and reversed from early lows to trade
higher for the eighth time in the past ten sessions as the closure of the Kerch
Strait in the Black Sea threatens to hamper Russian export capabilities.
Outside markets leaned bullish on ag futures for Tuesday, with crude oil higher
again as hostilities have resumed in the Persian Gulf. The June CPI report was,
as expected, much cooler than May with a 3.5% headline rate. The U.S. dollar
was lower following the report as Treasury yields declined as well. The
question is now whether the dip in inflation will prove short lived with energy
markets back on the rise given the end of the ceasefire in the Middle East.

Rhett Montgomery
DTN Lead Analyst

GENERAL COMMENTS:

   September corn closed down 2 1/2 cents and December corn was down 2 3/4
cents. August soybeans closed down 4 cents and November soybeans were down 3
3/4 cents. September KC wheat closed up 11 3/4 cents, September Chicago wheat
was up 9 3/4 cents, September MIAX Minneapolis wheat was up 4 3/4 cents.