DTN Midday Grain Comments 07/05 11:32

DTN Midday Grain Comments 07/05 11:32 All Grains Lower at Midday Row crops gapped lower on the open and slipped further: new contract lows in corn, and beans came within a penny of the 65 cent limit down. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 120 points. The interest rate products are lower The dollar index is 35 points higher. Energies are sharply lower with crude down 2.22. Livestock trade is mixed with cattle higher. Precious metals are mixed with gold up $11. CORN Corn trade is 12 to 15 cents lower at midday with trade gapping lower on the open to a new contract low. Shortly after the open we put in a new low at $3.48 on the December contract which the market is a nickel above at midday. Ethanol margins should be under a little pressure to start the week with the setback in energy prices and the driving demand of the 4th of July holiday in the rear view mirror. Local agencies in Brazil continue to reduce second crop production estimates. The weekly crop progress and conditions are expected to show steady conditions, with progress running ahead of normal with the June heat. The weekly export inpsections were good at 1.14 million metric tons. Chart support is now the fresh low at $3.48, and and the gap at $3.63 will be near term resistance. SOYBEANS Soybean trade is 55 to 62 cents lower at midday with tradge gapping 17 cents lower and seeing sustained pressure from there, with meal $19 to $20 lower and oil 40 to 50 points lower. Rains should help boost growth in the central/south this week with conditions expected to be steady with progress slightly ahead of normal, as the southern rains should help boost double crop germination. The weekly export inspections were seasonally normal at 191,426 metric tons. On the November soybean chart, support is the 50-day at 10.76, which we tested this morning with the 10-day at 11.11 first resistance. Long liquidation due to margin calls could become an issue this afternoon and tonight. The market tonight and the rest of the week should react to the latest forecasts and crop ratings this afternoon. WHEAT Wheat trade is 4 to 8 cents lower with harvest pressure expected to linger this week, while row crops and the dollar are adding additional pressure this morning, but trade is fairly heavily oversold at this point. Harvest progress should continue to roll on this week while other Northern Hemisphere growing areas will see harvest expanded especially in the Black Sea areas. The weekly progress and condition report should see harvest running ahead of normal with spring wheat well ahead of normal development with conditions steady to lower. The weekly export inspections showed some life at 560,948 metric tons. On the Kansas City December chart support is at the $4.28 1/2 lower Bollinger Band with resistance at $4.63, the 10-day moving average. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.