DTN Midday Grain Comments 07/19 11:04

DTN Midday Grain Comments 07/19 11:04 Grains Sharply Lower at Midday Trade is sharply lower at midday, led by soybeans. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are lower with the DOW futures down 5 points. Interest rate products are mostly lower. The dollar index is 53 points higher. Energies are mixed with crude down .25. Livestock trade is lower. Precious metals are mixed with gold up $3.00. CORN Corn futures are 10 to 12 cents lower at midday with pressure from 4-month highs in the dollar and a less-threatening forecast. Heat remains in the near-term forecasts with more moderate expectactions for heat and moisture following as of this morning. The forecast has been somewhat inconsistent, so further shifts may occur. Ethanol blender margins remain under pressure, but are good for producers. South American corn prices have firmed as the second crop harvest in Brazil wraps up. The weekly crop progress has the crop 10% ahead of the average pace at 56% silking. Crop conitions remained at 76% good to excellent but 1% moved from good to excellent. So we are in good shape going into some summer heat this week. On the December contract, minor support is at the 10-day at $3.59, which we have edged back below this morning then the contract low at $3.46. Resistance at the 20-day at $3.73. SOYBEANS Soybean futures are 30 to 35 cents lower at midday with trade giving back the late Monday turnaround on a more favorable forecast. Meal is $12 to $14 lower and oil is 20 to 30 points lower. The forecast overnight introduced more rain for some of the drier areas to the north and east of the belt. Export activity should remain good with U.S. offers at a strong discount to Brazil. The weekly crop conditions were unchanged as expected coming in at 71% good to excellent, but we did move 1% from fair to very poor. The progress report listed 59% blooming versus the 49% average, and 18% setting pods versus the 13% average. On the November soybean chart support is the recent low at $10.21, with trade falling back through the 10-day at 10.64 overnight. WHEAT Wheat futures are 7 to 13 cents lower at midday across the three contracts with the weak row-crop trade and the stronger dollar adding pressure this morning. Remaining harvest should continue to progress in the near term, both domestically and overseas. Crop progress listed the winter wheat harvest at 76% complete versus the 73% average. Spring wheat is 96% headed versus the 81% average pace. Spring wheat conditions slipped 1% to 70% good to excellent. On the KC December chart support is at the $4.43 10-day which we have faded through then the $4.24 contract low. Resistance is at the 20-day at 4.52. 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.