DTN Midday Grain Comments 07/06 11:14

DTN Midday Grain Comments 07/06 11:14 Grains Mixed at Midday Soybeans are sharply higher at midday with corn and wheat mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow up 120. The interest rate products are mixed. The dollar index is 55 points lower. Energies are mixed with crude up 0.60. Livestock trade is mostly higher. Precious metals are weaker with gold down $3.20. CORN Corn trade is 2 to 3 cents higher at midday with trade failing to punch through nearby resistance so far this morning. 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 through the following week. Ethanol margins remain strong, with futures edging higher even with the fresh EPA uncertainty. Corn basis has been flat to firmer in recent days with the lower board. Weekly export sales were a bit soft at 440,700 metric tons of old crop, and 232,100 of new. On the September chart we remain below the 10-day, at $3.56 which is now nearby resistance, and then the 20-day at $3.65 1/4. 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 21 to 23 cents higher at midday with sell the rumor buy the fact action as the tariffs take effect. Meal is $6.50 to $7.50 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 with Brazil making noises about importing U.S. beans. 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, but export sales were solid this morning with 561,600 metric tons of old, 458,700 of new, 132,800 metric tons of meal, 61,600 of new meal, 36,600 of old oil, and 3,800 oil, On the August chart support is at lower Bollinger Band at 8.15 and resistance the 10-day at $8.64, which are just below. WHEAT Wheat trade is narrowly mixed at midday with trade consolidating the early week gains, following flat European futures overnight this morning. Harvest progress should continue to push along with the homestretch ongoing for the plains. Spring wheat should see good progress with Canada remaining drier with warmer temps pushing maturity. Russia remains dry in the winter wheat growing areas with early-harvest yields down solidly from last year. HRW basis has remains solid ahead of the anticipated harvest protein improvement and board weakness. Weekly export sales were inline with expectations at 441,100 metric tons. On the September Kansas City is back above the 10-day at $4.88 and $4.70 1/4 further support with resistance the 20-day at $5.09. 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.