DTN Midday Grain Comments 07/19 11:19

DTN Midday Grain Comments 07/19 11:19 Most Grain Trade Higher at Midday Similar to midday on Tuesday, trade is higher across the board but off our highs. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 25 points. The interest rate products are mostly lower. The dollar index is 15 higher. Energies are mostly higher with crude up 0.65. Livestock trade is mostly higher. Precious metals are mixed with gold down $1.10. CORN Corn trade is 3 to 5 cents higher at midday with trade coming off some double digit gains. Concerns on near term heat working in the next couple of days is noted for the higher trade as well as mixed longer term outlooks. Some rains have visited the dry areas of the western belt but overall coverage is still short for many areas; we are in the middle of pollination this week. The weekly ethanol report showed production up 1.89%, stocks up 4.51% and gasoline demand down 2 percentage points, which has ethanol futures lower at midday which may continue to pull down on corn futures this afternoon. On the December chart support is the $3.91 20- and 50-day moving averages, then resistance is the $3.98 10-day which we trade above this morning but have failed to hold so far. SOYBEANS Soybean trade is 6 to 10 cents higher at midday with the near term trade continuing to consolidate above the $10.00 area. Meal is $2.00 to $3.00 higher, and 20 to 30 higher. Trade will continue to look to extended forecast for the reproductive season for guidance coming forward with some longer term models hinting as eastern belt ridging in August. China is expected to remain active for forward pricing in the near term. On the November chart support is at the 200-day moving average at $9.84 with resistance at the 10-day at $10.12 which we are just below at midday, with last week's highs at $10.47 as the higher resistance levels. WHEAT Wheat trade is 2 lower to 5 higher with the Minneapolis trade leading again at midday with quieter trade as winter wheat fails to hold much buying. Spread trade remains very soft for the winter wheat, and spring wheat went back to a small carry last week, with mostly steady trade this morning. Most world export business remains focused on the Black Sea area, with the dollar remaining at the lower end of the range which bodes well for US business down the road. Australia continues to see dryness, raising concerns for production in the coming months. On the December Kansas City contract support is the 50-day at $5.07 with the 20-day at $5.42 resistance. 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.