DTN Midday Grain Comments 07/20 11:43

DTN Midday Grain Comments 07/20 11:43 Corn, Wheat Lower at Midday; Beans Mixed Trade is mostly lower at midday following higher early morning trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 60 points. The interest rate products are higher. The dollar index is 6 points higher. Energies are mixed with crude up 0.25. Livestock trade is higher. Precious metals are lower with gold down $14.00. CORN Corn trade is 2 cents lower at midday with quiet two sided trade seen so far today. The daily range has been 7 cents. Heat is expected through Sunday before temperatures moderate again with a mixed moisture pattern. Extended forecasts have not been as bad which has lead to our weakness this week. The weekly EIA ethanol production was 2.49% higher, stocks were 0.12% higher, and gasoline demand was 1.18% higher. Which was good, but ethanol futures are down more than 3 cents at midday. South American corn prices have firmed as the second crop harvest in Brazil wraps up. Basis has remained fairly flat this week but expected to tighten near term with the lower board. On the December contract support is the contract low at $3.46, and resistance is the 10-day at $3.58. We are testing the contract low at midday. SOYBEANS Soybean trade is narrowly mixed at midday;this has been a two-sided overnight and morning market with a trading range just over 15 cents. Meal is $1 to $2 lower and oil is 40 to 50 points higher. The extended forecast will be watched closesly with more of the crop moving into pod fill as August approaches. Some heat is viewed as normal but a week or more of 100 degree temps would be stressful and yield damaging. The 3 to 4 days of extreme heat this week are obviously not ideal, but not expected to be that damaging at this juncture, illustrated by our lower market so far this week due to forecast changes. Export activity should remain good with U.S. offers a strong discount to Brazil for the most part. On the November soybean chart support is the recent low at $10.21, with resistance at the 10-day moving average at $10.57. We did challenge the $10.21 but found support. WHEAT Wheat trade is 2 to 6 cents lower at midday due to weaker row crop trade and the firm dollar. Remaining winter wheat harvest acres should continue to progress in the near term, both domestically and overseas. Quality concerns will remain with low protein remaining par for the course as winter wheat harvest moves north. Jordan canceled some import tenders as the offered prices from the Black Sea area were higher than expected. On the Kansas City December chart, support is the $4.24 contract low. Resistance is at the 10-day moving average at $4.42. 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.