DTN Midday Grain Comments 07/11 11:33

DTN Midday Grain Comments 07/11 11:33 Grains Trading Mixed at Midday Trade is mixed at midday after a more active overnight session. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 100 points. The interest rate products are mostly higher. The dollar index is 2 points lower. Energies are higher with crude up 0.30. Livestock trade is mostly higher. Precious metals are higher with gold up $1.10. CORN Corn trade is 1 to 3 cents lower at midday with trade turning lower overnight after initially moving higher with further declines on the weekly report with the forecast continuing to fluctuate with some areas seeing good rains overnight. The weekly crop progress showed a 3% decline to 65% good to excellent, and 10% poor to very poor with silking at 18%, 8% behind average. The forecast continues to fluctuate but the near term heat is the biggest concern with more corn pollinating every day over the next two weeks with limited rain for the west with a better shot for parts of the west in the next few days. Ethanol margins continue to struggle with the energy complex weak and corn firming, but ethanol futures have been trying to keep pace, putting the burden on the blenders. Basis has been mostly steady on the rally with spread trade staying near term stable with old crop supplies laying on the market. On the December chart support is $4.07 which is where we filled the gap overnight, with resistance at $4.22 1/2, the contract high. SOYBEANS Soybean trade is flat to 3 higher at midday with trade bouncing back from 17 lower trade in the early morning hours after making new highs post crop progress report as we saw profit taking vs. longs ahead of the WASDE tomorrow. Meal is flat to $1 higher and oil is flat to 10 lower. Soybeans still have a way to go until the key reproductive season but continued stress will raise concerns. Conditions on the Monday afternoon report were down 2 percentage points at 62% good to excellent, and 11% poor to very poor. Maturity is now a touch ahead of normal with 34% blooming vs. 32% on average and 7% setting pods vs. 5% on average. The latest forecasts should direct trade the remainder of the week with the USDA WASDE not expected to show much change. All eyes should remain on weather with the midday updates. On the November chart the new high at 10.47 is resistance with support at $10.13, which is where we set back to overnight on the gap filling trade. WHEAT Wheat trade is 5 lower to 2 higher with Minneapolis leading in active overnight trade again, with action 25 cents off the highs after another round of weaker conditions but 17 cents off the lows with the volatile action continuing. The weekly crop progress showed winter wheat 67% harvested 2% ahead of average. The spring wheat ratings slipped to 35% good to excellent, down 3 percentage points, and 39% poor to very poor, with heading at 79%, 4 percentage points ahead of average. The July WASDE report will provide further direction on yields on Wednesday along with abandoned acres to the north. The dollar remains near the lower end of the range adding support. On the December Kansas City contract, support is the 10-day at $5.56 with resistance at $6.02 which was the new high printed earlier in the week. 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.