DTN Midday Grain Comments 07/25 10:51

DTN Midday Grain Comments 07/25 10:51 Wheat Leads Mixed Trade at Midday Corn is flat to 2 cents lower; soybeans are 4 to 6 cents lower and wheat is 1 to 6 cents higher. Outside markets are mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 90 points lower. The dollar index is 4 points lower. Interest rate products are firmer. Energies are firmer with crude $.70 higher. Livestock trade is mostly lower. Precious metals are mixed with gold $5.40 lower. CORN Corn trade is flat to 2 cents lower midday Thursday in quiet trade as we continue to build support at the low end of the recent range. Trade has gotten fairly oversold with another positive finish or two needed to find technical buying. Warmer temps look to return later in the week, but nothing extreme with rainfall expected to be limited the next seven days for most. Ethanol margins remain under pressure with more plants starting to be idled again with futures at $1.50 a gallon. Basis has started to soften in some areas as well with harvest starting in the Southeast, with softer spreads as well. Weekly export sales were in line with recent weeks at 121,100 metric tons of old crop, and 386,600 metric tons of new crop. On the September nearby chart support is the fresh low at $4.18 with the 100-day below that at $4.04, with resistance the 50-day at $4.30, with the 10-and 20-day just above that. SOYBEANS Soybean trade is 4 to 7 cents lower with early buying evaporating again with little fresh news. Meal is $1.50 to $2.50 lower and oil is flat to 10 points higher. World export demand remains slow, with the dollar keeping the U.S. at a disadvantage. The first chunk of trade aid was confirmed with a minimum of $15 payment per acre with none expected for 2020 per Secretary Perdue. Weather will come into focus more as we head towards August and podfill season. Weekly export sales were a mixed bag at -78,200 metric tons of old crop, 223,700 metric tons of new crop, 87,300 metric tons old meal, 140,000 of new meal and 12,800 combined of oil. The September chart support is the 50-day at $8.85, with the next level up the 100-day at $8.96, which we closed just below with the 10 and 20-day the next round at $8.98 which we are tested overnight, with 200-day at $9.15 the next level up. WHEAT Wheat trade is 2 to 7 cents higher with buying returning during the day session after overnight weakness. The KC/Chicago spread has widened during the day session after initial narrower trade. The corn/hard red winter wheat spread is back to 20 cents. The warmer weather should allow harvest to progress to move to the home stretch for winter wheat with spring wheat just around the corner and mixed to good yields seen on the crop tour so far. Meanwhile Europe makes progress with good yields in France, while the Black Sea and Russia continues to see mixed yields as harvest rolls on with Russian estimates falling lower. The dollar is near the highs for the year. Weekly export sales were good at 659,700 metric tons. The September KC chart support is the recent low at $4.26 with the first resistance the 10-day at $4.41 which we are above at midday, with the 100-day at $4.49 the next round up. 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.