DTN Midday Grain Comments     07/31 11:00

   Grains Mixed at Midday

   Corn is flat to 1 cent lower, soybeans are 2 to 4 cents higher, and wheat is 
1 cent lower to 3 cents higher.

David Fiala,DTN Contributing Analyst

   The U.S. stock market is mixed with the Dow down 125 points. The dollar 
index is 5 points higher. Interest rate products are mixed. Energies are mixed 
with crude flat. Livestock trade is firmer. Precious metals are mostly higher 
with gold up $25.

   CORN

   Corn trade is flat to a penny lower at midday with trade remaining on the 
summer lows with favorable weather, and further new crop sales of 114,300 
metric tons sold to Mexico. Ethanol margins are a little narrower with the 
weakness in energies and the end of summer driving season looming. Basis has 
remained fairly flat in recent days, with isolated pockets of pre-harvest 
strength. 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 4 cents higher at midday with light buying as the 
August contract enters delivery with rumors of more export business getting 
done. Meal is narrowly mixed and oil is 30 to 40 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, which should keep new 
crop interest robust. USDA also announced 222,000 metric tons of soymeal to 
Philippines. The September chart now has resistance at the 20-day at 8.90 which 
we are testing at midday, and support the lower Bollinger Band at 8.74.

   WHEAT

   Wheat trade is 1 cent lower to 2 cents higher at midday 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 with 
added acres offsetting yield trends in spots. Kansas City is at a 91-cent 
discount to Chicago with spreads back to the top end of the range, while 
Minneapolis is back to a 22 cent discount with slight weakness in the 
intermonth spreads. 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, 
which is we are just below this morning.

   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




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