DTN Midday Grain Comments 07/26 11:11

DTN Midday Grain Comments 07/26 11:11 Grains Are Mixed at Midday Soybeans leads mixed trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 25 higher. The dollar index is 24 higher. Interest rate products are mixed. Energies are flat with crude $0.10 lower. Livestock trade is mixed. Precious metals are firmer with gold 3.80 higher. CORN Corn trade is 2 to 3 cent lower at midday with trade grinding back to a new low for the move as oversold conditions continue to build. Higher temps look to return into the weekend for many with rains remaining mixed. Ethanol margins remain under pressure with more plants starting to be idled again with futures below $1.50 a gallon with summer driving season on the downhill slide. Basis has started to soften in some areas as well with harvest starting in the SE U.S. with softer spreads as well. On the September nearby chart support is the fresh low at $4.15 with the 100-day below that at $4.05, with resistance the 10-day at $4.27. SOYBEANS Soybean trade is 4 to 7 cents higher with early strength lingering until midday instead of fading so far today. Meal is flat to $1.00 higher, and oil is 10 to 20 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 Sec. Perdue and the first payments going out in August and signup open on Monday. Weather will come into focus more as we head towards August and podfill season. The September chart support is the 50-day at $8.85 which we are just above at midday, with the next level up the 100-day at $8.96, with 200-day at $9.15 the next level up. WHEAT Wheat trade is 2 cents higher to 5 cents lower with the recent choppy trade continuing in the lower end of the range. The Kansas City/Chicago spread has widened during the day session again, back out to the recent highs. The corn/HRW spread is back to 16 cents after touching 20 yesterday. The warmer weather should allow harvest to progress to move to the home stretch for winter wheat with spring wheat just around the corner with mixed to good yields seen on the crop tour so far, while Europe makes progress with good yields in France amid record heat, while the Black Sea and Russia continue to see mixed yields as harvest rolls on with Russian estimates falling lower. The dollar is near the highs for the year, limiting US competitiveness. The September Kansas City chart support is the recent low at $4.26 with the first resistance the 10-day at 4.38 which we failed to hold on the strength yet again, 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.