DTN Midday Grain Comments 07/03 11:25

DTN Midday Grain Comments 07/03 11:25 All Grains Higher at Midday Trade is broadly firmer at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 85 higher. The dollar index is 5 higher. Interest rate products are lower. Energies are firmer with crude 0.30 higher. Livestock trade is mostly lower. Precious metals are higher with gold 13.70 higher CORN Corn trade is 10 to 13 cents higher with some recent short profit taking and we are adding in some weather premium ahead of the holiday. Trade halts at noon today. The current weather pattern looks to continue with moisture around with heat that should help crop development. The weekly ethanol report showed production up 9,000 barrels per day, and a jump in stocks at 1.277 million barrels. Ethanol futures though are up 2 cents at midday around the 1.52 area. Harvest will continue to expand in South America, with Black Sea conditions mixed along with China. Basis remains very strong across a variety of areas. On the September nearby chart support is at the $4.13 low printed this Monday, then the $4.10 50-day. Resistance is at the 10-day at $4.38. SOYBEANS Soybean trade is 5 to 8 cents higher with trade trying to follow corn strength again this morning with little fresh demand news. Meal is 1.50 to $2.50 higher, and oil is 10 to 20 points higher. Crush margins remain solidly positive overall, with meal weakness continuing relative to oil. World export demand remains slow, with the real remaining near the upper end of the range but still cheap vs. the dollar. Late soybean planting is likely complete except for some double crop. Trade talks have restarted but there is little to report, especially with the lack of swine fever demand hanging over the market. The September chart support is the 50-day at 8.75, and resistance the 100-day at 9.02. WHEAT Wheat trade is 4 to 9 cents higher with the winter wheats leading at midday on spillover support from corn as harvest moves on. The Kansas City/Chicago spread is continuing the recent pattern of narrowing overnight with the spread stable during the midday. The wheat/GRW spread is has traded below a dime this morning. The warmer weather should get combines moving more in the short term with above 90 degrees expected for the Plains, along with heat in continental Europe. The dollar is above 96 on the index with the rally pausing again. Wheat will still work into cattle rations in the southern plains short term. On the September Kansas City chart, support is the fresh low at $4.32, with resistance the 50-day at 4.48. 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 2019 DTN/The Progressive Farmer. All rights reserved.