DTN Midday Grain Comments 07/27 11:00

DTN Midday Grain Comments 07/27 11:00 All Grains Lower at Midday Corn is 1 to 2 cents lower, soybeans are 1 to 2 cents lower, and wheat is 6 to 10 cents lower. David Fiala,DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 30 points. The dollar index is 85 points lower. Interest rate products are mostly higher. Energies are weaker with crude down $0.66. Livestock trade is mixed with cattle leading. Precious metals are sharply higher with gold up $35.00. CORN Corn trade is 1 to 2 cents lower with trade unable to sustain buying this AM with light two-sided trade so far. The forecast is expected to remain a non-issue short term with rains expected for most short term. The ethanol margins should remain stable with gasoline demand holding serve in recent days. Basis has remained fairly flat in recent days as well. Weekly export inspections were a bit softer at 797,487 metric tons, with weekly crop progress showing steady conditions and maturity near average. On the September contract, trade continues to have resistance at the gap level from earlier in the month at $3.36, with the lower Bollinger Band at $3.15 as support. SOYBEANS Soybean trade is 1 to 2 cents higher with trade holding the upper end of the range, but struggling to find a story to spur further buying with limited weather issues but more sales reported to China of 132,000 metric tons, and 250,371 to Mexico. Meal is $1.50 to $2.50 higher and oil is 20 to 30 points lower. Crush margins see meal taking the lead again. The ral remains at the upper point of the recent range vs. the dollar with the new dollar lows likely to boost new crop sales. Weekly export inspections remain soft at 472,680, with crop progress showing steady conditions. The August chart now has support at the 20-day at $8.90 which we got back above last week, with the upper Bollinger Band at $9.15 as resistance. WHEAT Wheat trade is 6 to 10 cents lower at midday with the back and forth pattern continuing despite the fresh lows in the dollar. The ruble is losing ground, but harvest will keep bushels moving out of the Black Sea area short term. Matif wheat has held the range as well with Continental estimates revised lower this week. Kansas City is at an 90-cent discount to Chicago with spreads stabilizing, while Minneapolis is back to a 20 cent discount. Weekly export inspections were range bound at 544,010 metric tons, with winter wheat harvest nearing competition, with spring wheat conditions steady and heading nearly complete. Kansas City chart support is the 20-day at $4.44 which we are testing this a.m., with the recent highs around $4.60 as the next resistance levels. 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 (c) Copyright 2020 DTN, LLC. All rights reserved.