DTN Midday Grain Comments 07/23 11:38

DTN Midday Grain Comments 07/23 11:38 Wheat, Corn Slightly Higher at Midday Wheat is the midday leader with row crops mixed to higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 20. The interest rate products are firmer. The dollar index is 15 points higher. Energies are mostly firmer with crude up $0.15. Livestock trade is mostly higher. Precious metals are weaker with gold down $6.40. CORN Corn trade is 1 to 2 cents higher at midday with mixed slow trade to open the week. Futures still look to build on the strength seen last week. 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, especially in the southern growing areas. Ethanol board margins remain positive with the energy complex boosting blender margins to open the week with ethanol futures edging slightly lower. Corn basis has been flat to firmer for the most part. Weekly export inspections remained solid at 1.313 million metric tons. Weekly crop progress is expected to show steady to slightly lower conditions, and maturity still well ahead of normal. On the September chart futures are above the 20-day at $3.52 with the close Friday, the next level of resistance would be the upper Bollinger Band at 3.65. Support is the 20-day now, with the 10-day at 3.47 below that. SOYBEANS Soybean trade is narrowly mixed in quiet at midday trade with trade looking to extend the recent winning streak to open the week with trade handling the cancellation of new crop option origin sales to China well. Meal is $0.50 to $1.50 higher and oil is 10 to 20 points lower. Brazil remains at a stout premium to U.S. origin, still running $2.00 or better for fall, which mostly offsets the tariffs coming forward. Bean basis has remained steady with processors taking the lead with crush margins remaining exceptionally strong. 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. Weekly export inspection remained pretty solid at 722,048 metric tons. Weekly crop progress is expected to show steady to slightly lower conditions, and maturity remaining well ahead of normal. On the September chart the 10-day at $8.45 is again the first level of support, which we have not been able to follow through with further support the lower Bollinger Band at 8.24 with the next level resistance the 20-day at 8.57, which we have tested but haven't been able to move above consistently. WHEAT Wheat trade is 2 to 8 cents higher with the higher protein wheats leading so far, especially the Minneapolis contract. Spring wheat progress will slow a bit in North America with the cooler weather with winter wheat harvest nearing complete. Russian harvest continues to move along as well with yields remaining below last year's levels as they get into spring wheat harvest; although they have improved a little more as harvest expands. Western Europe continues to see excessive heat as harvest moves forward there. HRW basis has remains solid through harvest with the better protein with offered premiums declining. Weekly export inspections were within expectations at 397,862 metric tons. Weekly crop progress is expected to show winter wheat harvest nearing completion, with spring wheat conditions steady to slightly lower and progress still ahead of normal. On the September Kansas City is back above the 20-day at $4.89 and the 10-day at $4.91 with the 200-day at 5.11 the next level of resistance, which we are above this morning, with the next round of resistance at the 50-day at 5.23. 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.