DTN Midday Grain Comments 07/30 11:16

DTN Midday Grain Comments 07/30 11:16 All Grains Higher at Midday Wheat leads firmer trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 35. The interest rate products are firmer. The dollar index is 40 points lower. Energies are firmer with crude up $1.30. Livestock trade is mixed with cattle weaker. Precious metals are mixed with gold down $0.20. CORN Corn trade is 5 to 6 cents higher at midday with trade testing overhead resistance this morning with support from wheat. Warmer weather looks to return the second half of the week which should add some support. Ethanol margins have narrowed with the corn rally but remain positive with blender margins seeing the most pressure as ethanol futures have firmed back to the 1.44 area with blender margins improved this morning. Corn basis is fading ahead of harvest and late season corn movement. The weekly export inspections were very strong at 1.658 million metric tons. Weekly crop progress should be steady with conditions well ahead of normal. On the September chart futures are above the 10-day at $3.56, and the 20-day at $3.52, with the next level of resistance would be the upper Bollinger band at 3.66, which we are just above at midday with the 50-day at $3.72 above that. SOYBEANS Soybean trade is 2 to 6 cents higher at midday with trade in the middles-of -the-day range with an initial gap higher overnight, with trade coming close to filling the gap early on. Meal is narrowly mixed as is oil. Brazil remains at premium with the US fall export program uncertain with bookings running behind off the west coast, while nearby movement has remained solid. Bean basis has remained steady with processors taking the lead with crush margins remaining exceptionally strong. Weather could provide more support if August weather keeps trending drier and warmer. Weekly export inspections were pretty good at 740,323 metric tons. Weekly crop progress is expected to be steady for conditions with maturity still running well ahead of normal. On the September chart the upper Bollinger Band at $8.84 which is resistance with the 50-day at 9.21 above that, with the 20-day at $8.55 still support. WHEAT Wheat trade is 13 to 17 cents higher at midday with good buying as issues in Europe continue to dominate trade, along with the transition from winter to spring harvest in the U.S. Spring wheat progress will pick up with the warmer weather returning this week. 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 and exports remain slow. Weekly export inspections remained within the recent range at 379,143 metric tons. Weekly crop progress should show winter wheat harvest almost done, with spring wheat conditions steady and maturity well ahead of normal. On the September Kansas City chart, we are back above all the major moving averages with trade with the 50-day at 5.22, and the 100-day at 5.30 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.