DTN Midday Grain Comments 07/05 11:16

DTN Midday Grain Comments 07/05 11:16 Wheat Leads Grain Higher at Midday Wheat is sharply higher, while row crops are mixed at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow up 125. The interest rate products are mixed. The dollar index is 30 points lower. Energies are mixed with crude down 0.60. Livestock trade is mostly higher. Precious metals are mixed with gold up $6.40. CORN Corn trade is narrowly mixed at midday with early nickel-higher trade fading as the session wears on with soybeans acting as a drag. Black Sea corn remains mostly dry into July and U.S. weather cools briefly into the weekend with warmer and drier weather expected after that for much of the belt. Ethanol production was down 5,000 barrels per day, with stocks up 301,000 barrels, with ethanol futures edging a penny higher. Corn basis has been flat to firmer in recent days with the lower board. Weekly export sales are delayed until Friday, with 137,000 metric tons of optional-origin new crop sold to South Korea. On the September chart we remain below the 10-day, at $3.59, which is now nearby resistance, and then the 20-day at $3.68 1/2. Support is in the $3.44 1/2 to the $3.46 3/4 area which is the lower Bollinger Band and the contract low printed Monday respectively. SOYBEANS Soybean trade is 1 to 3 cents lower with trade concerns keeping pressure on the market to start. Meal is flat to $1.00 higher and oil is flat to 10 points lower. Brazil remains at a stout premium to U.S. origin, which is compounded by the ongoing logistics issues. Bean basis has remained steady to firmer with processors taking the lead. Weather should continue to push growth along in the near term. There has been talk of further cancellations of outstanding sales to China, which would show up on the weekly report tomorrow morning. On the August chart support is at lower Bollinger Band at 8.22 and resistance the 10-day at $8.74. WHEAT Wheat trade is 12 to 20 cents higher at midday with Kansas City wheat leaving a nickel-higher gap this morning with production expectations still sliding for Europe with Germany also expected to be down 20% on the year. Harvest progress should continue to push along with the homestretch ongoing for the Plains. Spring wheat should see good progress with Canada remaining drier. Russia remains dry in the winter wheat-growing areas with early harvest yields down solidly from last year, along with yield concerns in continental Europe. HRW basis has remained solid ahead of the anticipated harvest protein improvement and board weakness. On the September chart, Kansas City is back above the 10-day at $4.88 and $4.70 1/4 further support with resistance the 20-day at $5.12. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.