DTN Midday Grain Comments 07/22 11:44

DTN Midday Grain Comments 07/22 11:44 Grain Trade Mixed at Midday Wheat is the midday leader with short profit taking and buying against row crop selling. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 5 points. The interest rate products are mostly higher. The dollar index is 43 points higher. Energies are mixed with crude down 0.70. Livestock trade is mostly higher. Precious metals are lower with gold down $8.00. CORN Corn trade is narrowly mixed at midday with trade bouncing off fresh contract lows printed earlier this morning. A fresh set of rains hit Missouri, Illinois, Indiana, and Pennsylvania this morning, and the heat looks to moderate by the weekend. Ethanol margins remain solid for the producers while the blender margins have tightened with the building unleaded stocks, with ethanol futures slightly lower this morning. South American corn prices have firmed as the second crop harvest in Brazil wraps up, which should push more export business back the U.S. with siginifcant discounts on the world market. 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 $3.33 1/4 cents with the $3.31 area below that, and resistance is the 10-day moving average at $3.54. SOYBEANS Soybean trade is 37 to 42 cents lower at midday with a more mild forecast with rain for next week adding to selling pressure with liquidation accelerating. Meal is $12 to $13 lower and oil is 75 to 85 points lower. 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. On the November soybean chart support is the 200-day moving average at 9.53, with resistance at the 10-day moving average at $10.47. WHEAT Wheat trade is 5 to 8 cents higher across the three contracts at midday with short profit taking starting to build mid-morning with trade coming solidly off the session and some contract lows. 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. The continental European wheat crop is continuing to see cuts in production estimates while the Black Sea area raises theirs slightly. Some buying wheat selling row crop spreading is noted supporting wheat today, not necessarily friendly wheat news. Part of being in oversold conditions. On the Kansas City December chart support is the $4.24 contract low. Resistance is at the 10-day moving average at $4.40, which we have tested this morning. 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.