DTN Midday Grain Comments 07/06 11:28

DTN Midday Grain Comments 07/06 11:28 Corn, Wheat Lower at Midday Wheat leads corn lower at midday along with the higher condition rating. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 80. The interest rate products are lower. The dollar index is 38 points lower. Energies are higher with crude up 1.20. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold up $1.20. CORN Corn trade is 2 to 4 cents lower at midday with trade setting back from the higher end of the range with scattered rains, along a slight improvement in conditions on the weekly report. The weekly conditions were 1% better at 68% good to excellent and 7% poor to very poor, with 10% silking, 3% below average. The weekly ethanol production report showed production .10% lower, stocks were 1.22% lower, and gasoline demand 1.75% higher. Exports sales are delayed until tomorrow because of the Holiday. On the December chart, support is the 20-day at $3.91, with the 200-day at $3.87. Resistance remains at the 12-month high printed 4 weeks ago at $4.09; the weekly high is $4.05. SOYBEANS Soybean trade is narrowly mixed at midday with trade popping back from the overnight weakness. Meal is 0.50 to $1.50 higher and oil is 15 to 25 points lower. The EPA punted on any major changes to biodiesel usage, limiting biodiesel upside. Conditions were 2% lower at 64% good to excellent, and 9% poor to very poor, with 18% blooming, and 1% ahead of average, which should add some overnight support. Basis has been steady so far on the rally, but has started to widen at some processors with spread trade steady. On the November chart we moved fully above the 200-day at $9.81 on Monday so support levels to note are the 100-day at $9.75 then the 50-day at $9.46. Resistance is at our weekly high of $9.97 then $10. WHEAT Wheat trade is 12 to 32 cents lower at midday with all grades setting back after the early-week buying dried up as trade got wildly overbought, especially on the Minneapolis contract. Winter wheat spread trade remains soft, while the spring wheat market remains inverted nearby. The weekly condition report was 48% good to excellent, and 17% poor to very poor, with 53% harvested vs 54% on average for winter wheat, while spring wheat was 3% lower at 37% good to excellent, and 33% poor to very poor with 59% headed vs. 54% on average, which matched expectations for the most part. The July WASDE report will provide further direction on yields, along with the status of the European and Russian crops that have declined in recent weeks. On the December Kansas City contract, support is the 10-day at $5.35 with resistance at $6.02 which was the new high printed yesterday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.