DTN Midday Grain Comments 07/25 13:07

DTN Midday Grain Comments 07/25 13:07 Corn, Wheat Higher at Midday Wheat is sharply higher at midday, with corn firmer, and soybeans flat. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 75. The interest rate products are mixed. The dollar index is 3 points lower. Energies are mostly firmer with crude up $0.25. Livestock trade is mixed. Precious metals are firmer with gold up $3.50. over the last couple of days. With all nearby contract trading in a narrow trading range from $152 to $154 per cwt, the complex is still trading near the top end of the market range. But steady cattle supplies have limited the optimism in the complex. CORN Corn trade is 5 to 6 cents higher at midday with trade rebounding from the weaker trade on Tuesday with spillover support from the strong wheat trade. Cooler weather looks to hang around the next week to 10 days 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. The weekly ethanol report showed production down up 10,000 barrels per day, with stocks down 115,000 barrels with ethanol futures working higher after an across the board stocks draw in the energy complex. Corn basis has been flat to firmer for the most part. On the September chart futures are above the 20-day at $3.51, the next level of resistance would be the upper Bollinger Band at 3.63. Support is the 20-day now, with the 10-day at 3.48 below that. SOYBEANS Soybean trade is narrowly mixed at midday with trade working sideways after the solid gains on Tuesday while the market digests the trade aid package. Meal is flat to $1.00 lower and oil is flat to 10 points higher. 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, along with pending direct payments to farmers. 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 with early August trending drier on some forecasts. The export wire has remained quiet this week. On the September chart, the 20-day at $8.49 is the first level of support after we moved above it yesterday, with the upper Bollinger band at $8.79 as first resistance. WHEAT Wheat trade is 23 to 28 cents higher at midday with wheat trade following European values higher as production risks continue to build into focus especially with disappointing early results on the spring wheat tour. Spring wheat progress will slow a bit in North America with the cooler weather with winter wheat harvest nearing completion. 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 with relief not offered until August. HRW basis has started to waver a bit on the plains as harvest wraps up. On the September Kansas City chart, we are back above all the major moving averages with trade jumping past the 50-day at 5.22, and the 100-day at 5.30 this morning. 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.