DTN Midday Grain Comments 07/29 11:04

DTN Midday Grain Comments 07/29 11:04 Grains Mixed at Midday Soybeans lead at midday with corn and wheat slightly higher. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are mixed with the DOW futures down 15 points. Interest rate products are lower. The dollar index is 120 points lower. Energies are mixed with crude .20 higher. Livestock trade is mostly higher. Precious metals are higher with gold $12.90 higher. CORN Corn futures are 1 to 2 cents higher at midday with support from the stronger soybean trade and weaker dollar, while pressure from moderate near-term weather and yield expectations weigh on the market. Ethanol margins for producers and blenders are under pressure with the sliding energy market, with producers still having positive margins for now. The weather forecast is cooler in the near term with rain expected to catch some of the remaining dry areas over the next week, with some heat returning next week. The bull argument here is strong demand is present to take on the big supplies, with U.S. 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 $3.43; then the 20-day at $3.52. SOYBEANS Soybean futures are 14 to 19 cents higher at midday with trade finding buying during the day session on the back of strong demand and oversold conditions, with meal $4 to $5 higher and oil 50 to 60 points higher. Near-term weather looks non-threatening for the most part, and the warmer and drier extended forecast moderated overnight, but continues to fluctuate. The USDA announced futher sales of 129,000 metric tons of soybeans to unknown split between old and new crop. The daily wire has been busy the last three days, and will need to stay that way to get trade excited about demand. 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 $9.98. WHEAT Wheat futures are 1 to 4 cents higher across the three contracts at midday with the firmer row-crop trade and the sharply weaker dollar this morning helping trade to firm back from some early weakness. The heavy world and domestic supplies continue to limit upside in wheat. Production estimates continue to slide out of Continental Europe while Russian production estimates remain strong as harvest moves along. Lower acres for next season will also be on the trade's mind with planting for winter wheat not far off. On the KC December chart support is at the $4.24 contract low. Resistance is at the 10-day and 20-day moving averages around $4.38-40 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.