DTN Midday Grain Comments 07/27 11:33

DTN Midday Grain Comments 07/27 11:33 All Grains Higher at Midday Soybeans lead trade higher across the board at midday with warmer forecasts providing support. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 6 points. The interest rate products are mostly lower. The dollar index is 13 points higher. Energies are mixed with crude 0.80 lower. Livestock trade has hogs lower and cattle and feeders higher. Precious metals are mixed with gold $6.50 higher. CORN Corn trade is 1 to 3 cents higher at midday with trade finding support from the stronger soybean trade this morning. The weekly ethanol production report showed production down 3.0% down last week from record levels, stocks were 3.6% lower, and gasoline demand was 0.12% higher, as producer margins remain strong and blender margins remain poor. Rains look to work through much of the belt again, helping to push grain fill and keep the trade talking about very strong yields. Corn prices in Brazil remain at record levels, limiting exports and likely expanding acres this winter. The USDA announced export sales of 247,912 metric tons to unknown, split between old and new crop. On the December contract support is the contract low at $3.33 1/4. Resistance is the 10-day moving average at $3.48; then the 20-day at $3.55. SOYBEANS Soybean trade is 15 to 19 cents higher at midday with trade finding buying on concerns about the extended forecast being more stressful for soybeans, along with trade being a bit oversold coming into the week. Meal is $6 to $7 higher overnight, and oil is flat to 10 points higher. The weather forecast is still showing hints of a warmer and drier August, which will keep some support under the trade, while near-term rains could trigger short term selling. Export business should continue to favor the U.S. with 131,000 metric tons announced as sold to China for new crop. On the November soybean chart support is at the $9.63 three-month recent low, then the 200-day moving average at 9.53, with resistance at the 10-day moving average at $10.15. WHEAT Wheat trade is 1 to 5 cents higher across the three cotnracts at midday due to spillover support from the row crops. The heavy world and domestic supplies continue to limit upside in wheat with concerns about flour recalls yesterday. Production estimates continue to slide out of continental Europe while Russian production remains strong. Some buying wheat versus selling bean spreading supported wheat the past week, but the fear of hot August weather appears to have quickly scared some spreaders out of position. This was not a surprise and spring wheat should stay supported versus winter wheat contracts. On the Kansas City December chart support is the 10-day and 20-day moving averages around $4.40 which we are testing at midday, with the 50-day resistance at 4.74. 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.