DTN Midday Grain Comments 07/28 11:12

DTN Midday Grain Comments 07/28 11:12 Grains Mixed at Midday Trade is narrowly mixed at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 80 points. The interest rate products are higher. The dollar index is 49 points lower. Energies are mixed with crude 0.50 lower. Livestock trade has hogs lower and cattle and feeders higher. Precious metals are higher with gold $7.80 higher. CORN Corn trade is 3 to 5 cents lower at midday with trade giving back early gains as moderate termperatures and a lack of fresh demand news help trade to set back. On ethanol, producer margins remain just okay and blender margins remain poor with the weakness in unleaded values dragging the complex lower, with ethanol futures a penny lower. The weather forecast is cooler in the near term with rains looking for limited for the next week or so for much of the belt, overall the crop should continue to develop at a good pace with strong yields very likely. Export sales were mediocre at 438,800 metric tons of old crop, and 476,500 of new. The bull argument here is strong demand is present to take on the big supplies, with US origin at a discount to the rest of the world. On the December contract support is the contract low at $3.33 1/4. Resistance is the 10-day moving average at $3.46; then the 20-day at $3.53. SOYBEANS Soybean trade is narrowly mixed at midday with two sided trade as the market digests a bit more moderate extended forecast, and demand items weren't enough to trigger buying. Meal is mixed and oil is 10 to 20 points higher. Near term weather looks non-threatening for the most part, but the extended weather forecast is still showing hints of a warmer and drier early August weather. Export business should continue to favor the US with the weekly sales were mixed at -1,400 metric tons of old crop, 678,200 of new, 79,200 of old crop meal, 71,500 of new crop meal, and 6,500 of oil. The USDA announced 328,000 metric tons sold to unknown, and 129,000 to China. On the November soybean chart support is at the $9.63 3-month recent low, then the 200-day moving average at 9.53, with resistance at the 10-day moving average at $10.07. WHEAT Wheat trade is flat to 3 cents higher across the three contracts at midday with the sharply lower dollar adding support this morning, but weaker row crop trade has limited upside. The heavy world and domestic supplies continue to limit upside in wheat, but a reversal in the dollar would be broadly supportive if it can be exteneded. Production estimates continue to slide out of Continental Europe while Russian production estimates remains strong. A weekly export sales were 506,100 metric tons, continuing to run well ahead of last years pace. On the Kansas City December chart support is at the $4.24 contract low. Resistance is at the 10-day and 20-day moving averages around $4.41 then the 50-day at 4.73. 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.