DTN Midday Grain Comments 07/08 12:19

DTN Midday Grain Comments 07/08 12:19 Grains Mixed at Midday Two-sided trade to open the week. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 100 lower. The dollar index is 6 higher. Interest rate products are mixed. Energies are mixed with crude 0.30 higher. Livestock trade is lower. Precious metals are mixed with gold 1.00 lower. CORN Corn trade is narrowly mixed at midday with early gains fading with the forecast shifting, and little fresh news. The crop looks to be heading towards pollination with mixed weather into mid-month as we try to catch crop development up. Ethanol margins remain tight with the peak of summer driving likely passed and futures fading back to 1.50 this morning. 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. Weekly export inspections showed improvement at 703,192 metric tons. Weekly crop progress is expected to show steady conditions with maturity still well behind normal. On the September nearby chart support is at the $4.13 low printed this Monday, then the $4.11 50-day. Resistance is at the 10-day at $4.38 which we failed to hold this morning, and then the 20-day at 4.42 which we are tested overnight. SOYBEANS Soybean trade is flat to 3 cents higher at midday with trade still struggling to advance amid demand worries. Meal is flat to $1.00 higher, and oil is 35 to 45 points higher. Crush margins remain solidly positive overall with oil still holding the recent leadership position as meal falls back towards $300 a ton. World export demand remains slow, with the real remaining near the upper end of the range but still cheap vs. the dollar, especially with the recent dollar rebound. Late soybean planting is likely complete except for some double crop, which should be reflected on the weekly report, along with steady conditions expected. Weekly export inspections were ok at 757,903 metric tons. The September chart support is the 50-day at 8.75, and resistance the 100-day at 9.02. WHEAT Wheat trade is flat to 3 cents lower with the winter wheat fading as harvest moves along on the plains. The Kansas City/Chicago spread remains near highs with harvest pushing HRW feed usage, along with scarce milling wheat with the growing conditions in some areas. The corn/HRW spread remains around 6 cents, and steep cash discounts across the Plains. The warmer weather should allow harvest to progress and move past the halfway point, while Europe draws closes, and the Black Sea continues to see mixed yields. The dollar is just below 97 on the index with the rally picking up again. Weekly export inspections improved at 609,456 metric tons, and through the first month of the marketing year we are 850,000 metric tons ahead of last years pace. Weekly crop progress should show winter wheat harvest moving past 50%, and with spring wheat conditions steady with maturity lagging. On the September Kansas City chart support is the fresh low at $4.32, with resistance the 50-day at 4.49. 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.