DTN Midday Grain Comments 07/18 11:44

DTN Midday Grain Comments 07/18 11:44 Grains Mixed at Midday Mixed midday trade is seen with the market giving back some light early gains. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 85. The interest rate products are firmer. The dollar index is 5 points higher. Energies are mostly firmer with crude up $0.30. Livestock trade is mixed with cattle higher and hogs lower. Precious metals are slightly lower with gold down $1. CORN Corn trade is flat to a penny higher at midday after trading 3 cents higher early in the morning session. On the chart it appears the market is trying to move through nearby resistance, but is taking its time. Outside markets are neutral at midday, and weather is fairly benign. Cooler weather looks to hang around the next couple weeks with mixed moisture potential with a growing focus on early August weather with the advanced state of the crop. Ethanol board margins remain positive but have narrowed with firmer corn and weaker energy trade. Corn basis has been flat to firmer for the most part. On the September chart futures are around the 10-day at $3.47, with the 20-day at $3.53 chart resistance. Support is the fresh low of $3.37 1/4 scored last week which is also the level of the lower Bollinger Band. SOYBEANS Soybean trade is mixed at midday after some higher overnight and early-day session strength with soybeans continuing to try to work higher after reversing on Monday. Meal is mixed and bean oil is 20 to 30 points higher. Brazil remains at a stout premium to U.S. origin, which is compounded by the ongoing logistics issues with Brazil with premiums around $2.05, which almost equals the tariffs placed by China. Bean basis has remained steady with processors taking the lead with crush margins remaining exceptionally strong. The daily export wire has remained quiet. Weather should not be a major driver near term for soybeans due to limited stressful forecasts but with pod fill starting beans could be more active based upon any forecast changes. On the August chart the 10-day at $8.42 is again the first level of resistance which we were we are trading this morning with further support the lower Bollinger Band at 8.13 with the next level resistance the 20-day at 8.58. WHEAT Wheat trade is 1 lower to 4 cents higher at midday with trade working to consolidate the attempt at an uptrend we are seeing since the report last week. Harvest pressure should start to fade as it winds down for the winter wheat. Spring wheat should see good progress with Canada with drier weather showing up again for some. Russian harvest continues to move along as well with yields remaining below last year's levels as they get into spring wheat harvest. HRW basis has remains solid through harvest with the better protein with offered premiums declining. On the September KC is just above the 20-day at $4.90 and the 10-day at $4.93 overnight with the 200-day at 5.11 the next level of resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.