DTN Midday Grain Comments 07/26 11:12

DTN Midday Grain Comments 07/26 11:12 Mixed Trade in Grains at Midday Row crops are staying positive at midday, with wheat turning mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 130. The interest rate products are mixed. The dollar index is 30 points higher. Energies are mostly firmer with crude up $.50. Livestock trade is mixed. Precious metals are weaker with gold down $5.10. CORN Corn trade is 2 to 4 cents higher at midday with trade backing away from the test of $3.80 December this morning with pressure from soybeans and wheat backing off their highs. 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. Ethanol margins have narrowed with the corn rally but remain positive with ethanol futures firmer this morning. Corn basis has been flat to firmer for the most part but early harvest and late old crop movement will starting working against the basis soon. Weekly export sales were good at 338,500 metric tons of old crop, and 747,500 of new crop. 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 which we are just below at midday with the 50-day at $3.73 above that. Support is the 20-day now, with the 10-day at 3.48 below that. SOYBEANS Soybean trade gapped higher overnight but failed to hold gains for the most part with midday trade 2 to 4 higher after trade 20 higher early on after news of a trade agreement with the EU that indicated better soybean demand. Meal is $2.50 to $3.50 higher and oil is flat to 10 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, 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. Weekly export sales good at 538,100 metric tons of old crop, 963,800 of new crop, 166,400 of old meal, and 37,600 of new meal, 1,100 of net oil sales. The daily export wire has remained quiet this week so far. On the September chart we challenged the upper Bollinger Band overnight at $8.86 which is resistance with the 50-day at 9.25 above that, with the 20-day at $8.55 still support. WHEAT Wheat trade has turned mixed at midday with spring wheat still higher and winter wheat dipping lower with trade starting to see profit taking with the strong rally. Spring wheat progress will slow a bit in North America with the cooler weather with winter wheat harvest nearing completion but warmer weather should kick start harvest into early August. 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 with some problems with sprouting. 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. The weekly export sales were inline with recent weeks at 338,500 metric tons. On the September Kansas City 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 with the next resistance the recent high at $5.53. 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.