DTN Midday Grain Comments 07/08 11:35

DTN Midday Grain Comments 07/08 11:35 All Grains Higher at Midday Outside market support and weather premium in front of a July weekend has corn, soybeans and wheat higher at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 190 points. The interest rate products are mixed. The dollar index is 11 points higher. Energies are higher with crude up 10. Livestock trade is mixed. Precious metals are mixed with gold down $9. CORN Corn trade is 6 to 7 cents cents higher at midday after trading nearly a dime higher. The bull argument got a needed boost yesterday when Conab dropped their July old crop production estiate to 69.1 million tons compaired to 76.2 million on their June estimate. The weekly EIA report ethanol production was down 1.89%, gasoline demand up 0.47 percentage points but ethanol stocks rose 1.84%. This helped push the market back down. At midday it appears some shorts are taking profits and going neutral into the summer weekend. Next week if no weather change occurs from the current good weather picture, the focus should be solely on the Tuesday release of the July USDA World Agricultural Supply and Demand Estimates. The larger than expected June 1 stocks number, the higher planted acreage and the 75% good to excellent crop ratings should lead to a negative supply side report on Tuesday. Chart support is at the fresh contract low printed this week at $3.46, with resistance at the $3.63-$3.65 gap left on Tuesday morning. SOYBEANS Soybean trade is 22 to 27 cents higher at midday, meal is up $7 and bean oil up 25-45 points. Outside market support along with short profit taking appear to be behind our strength. Weather premium in front of a July summer weekend makes sense following a big drop. November beans at midday are nearly 90 cents below last Friday's close and 30 cents above our one-month low printed overnight. Moisture this week should help boost growth in the central/north central areas of the belt while warmer temperatures encourage growth. Late July and early August are the most important weather periods for beans which believe it or not, soybeans could be more volatile after the reports next week reacting to forecasts. On the November soybean chart support is at the $10.21 overnigh low with resitance at the 10.78 50-day moving average. WHEAT Wheat trade is 5 to 12 higher at midday with spillover support from the row crops and both short profit taking and some bottom picking buying due tohte low historic prices of wheat. Also some buying wheat and selling of the row crops spreading has been noted this week. Greatr chart buying could occur if we get higher; for example December Kansas City wheat is just below its lowest major moving average at the 10-day at $4.47. The USDA is expected to continue to show large domestic and global supplies on Tuesday. The market question to answer is whether or not the bearish supply side fundamentals are priced-in. On the Kansas City December chart support is at the $4.24 contract low reached Wednesday with resitance at the $4.47 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.