DTN Midday Grain Comments 07/21 11:15

DTN Midday Grain Comments 07/21 11:15 Wheat, Beans Higher at Midday Trade is mixed at midday, with soybenas and wheat higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the DOW futures down 30 points. The interest rate products are mixed. The dollar index is 18 points lower. Energies are mixed with crude down .40. Livestock trade is lower. Precious metals are mixed with gold down $4.00. CORN Corn trade is 1 to 2 cents lower with light two sided trade so far. Heat is expected through Sunday before temperatures moderate again with a mixed moisture pattern following with more rain shifting into the central part of the belt. Ethanol margins remain solid for the producers while the blender margins have tightened with the building unleaded stocks. South American corn prices have firmed as the second crop harvest in Brazil wraps up, which should push more export business back the US with siginifcant discounts on the world market. Basis has remained fairly flat this week but expected to tighten near term with the lower board. The weekly export sales were disappointing at 345,100 metric tons of old crop, and 506,300 of new crop. On the December contract support is the contract low at $3.39 1/4 cents, and resistance is the 10-day at $3.57. SOYBEANS Soybean trade is 5 to 10 cents higher at midday with light commercial buying helping to support the market this morning. Meal is $1 to $2 higher and oil is 35 to 45 points higher. The extended forecast will be watched closesly with more of the crop moving into pod fill as August approaches with more moderate forecasts raising yield expectations. Export activity should remain good with US offers a strong discount to Brazil for the most part. The weekly export sales were good at 325,000 metric tons of old crop, 1.0 million of new crop, 150,400 of old crop meal, 60,200 of new crop meal, 17,100 of old crop oil, and 3,000 of new crop oil. On the November soybean chart support is the recent low at $10.04, with resistance at the 10-day moving average at $10.54. WHEAT Wheat trade is 2 to 5 cents higher across the three contracts at midday with light commercial buying supporting trade, along with the slightly softer 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 expeted, while the US remains non-competitive to that area of the world. The weekly export sales were improved at 478,000 metric tons. 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.