DTN Midday Grain Comments 07/29 10:57

DTN Midday Grain Comments 07/29 10:57 All Grains Lower at Midday Corn is 4 cents lower, soybeans are 14 cents lower, and wheat is 1 to 5 cents lower. David Fiala,DTN Contributing Analyst The U.S. stock market is lower with the Dow down 90 points. The dollar index is 12 points higher. Interest rate products are higher. Energies are mixed with crude down $0.60, unleaded down over a penny and ethanol a few pennies higher. Livestock trade is higher. Precious metals are higher with gold up $13. CORN Corn trade is flat to a penny lower overnight with trade working to hold the lower end of the range with little fresh news overnight. Outside markets are mostly neutral overnight. The weather is expected to remain a short-term non-issue. The weekly ethanol report is expected to show steady production and slightly lower stocks. Basis has remained fairly flat in recent days. Localized basis moves may be seen both positive and negative, with movement prior to the upcoming harvest, but some areas with tight old crop should improve basis to get bushels moved while the board is slipping. On the September contract, trade continues to have resistance at the gap level from earlier in the month at $3.36, with chart support at the lower Bollinger Band at $3.13. SOYBEANS Soybean trade is 2 to 3 cents lower overnight with light selling pressure after the Tuesday weakness on improved crop conditions and little threats otherwise. Meal is $1 to $2 lower and oil is 10 to 20 points higher. Demand will need to be the driver of rallies with weather threats limited. 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. The August chart now has support at the 20-day at $8.93 which we have tested. Resistance is at the 200-day moving average at $9.07 then the upper Bollinger Band at $9.12. WHEAT Wheat trade is 3 to 5 cents higher overnight with trade finding light buying as the back-and-forth pattern continues with primary support from the weaker dollar and the end-of-harvest pressure. The ruble is losing ground, but harvest will keep bushels moving out of the Black Sea area short term. Kansas City is at an 86-cent discount to Chicago with spreads stable, while Minneapolis is back to a 20 cent discount. Kansas City September chart support is the recent low at $4.23 3/4, with the 20-day back above the market as nearby resistance at $4.45. 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.