DTN Midday Grain Comments     07/29 10:49

   Grain Futures Moving Higher Midday Thursday

   Corn is 5 to 6 cents higher, soybeans are 13 to 15 cents higher and wheat is 
13 to 20 cents higher.

David M. Fiala
DTN Contributing Analyst

   MARKET SUMMARY:

   The U.S. stock market is firmer with the Dow up 190 points. The U.S. Dollar 
Index is 0.44 lower. Interest rate products are mostly higher. Energies are 
firmer with crude up $0.70. Livestock trade is mixed with hogs leading. 
Precious metals are firmer with gold up $30.00.

   CORN:

   Corn trade is 5 to 6 cents higher at midday Thursday with trade continuing 
to work the middle of the recent range with little fresh news overall and 
spreads softer as September/December goes to a slight carry. Ethanol margins 
look stable with energies moving more sideways as well, with corn strength 
limiting gains a bit. Brazil will continue to move along with the end of the 
second crop season with frost issues still being watched as crop estimates 
continue to trickle lower, while near-term weather looks more mixed into August 
for the U.S. with possible storm damage in some spots overnight. Corn basis 
continues to fade with cash inverses likely to see more pressure as wheat and 
southern sorghum start to become available to feed. Weekly export sales were 
mixed at -115,200 metric tons of old crop and 529,300 of new crop. On the 
September contract, resistance remains at $5.57 with further support at the 
lower Bollinger Band at $5.22.

   SOYBEANS:

   Soybeans are 13 to 15 cents higher at midday with trade looking to sustain 
strength after the active start to the week and weather forecasts likely to 
dictate late session action, with spread action remaining flat. Meal is 
narrowly mixed and oil is 1.45 cents to 1.55 cents higher. The weather pattern 
is warmer and drier short term with more rain coverage in the extended forecast 
for the East as we go into pod fill. South America will continue to ship 
soybeans while the run in canola values turn more sideways, potentially 
limiting oil upside short term. Basis levels have been flat to weaker in recent 
days. Weekly export sales were mixed at -79,200 metric tons old crop and 
312,800 of new; meal at 87,300 of old and 73,100 of new, with oil at 2,200. On 
the September soybean chart, resistance is at the 20-day at $13.70, which we 
are solidly above at midday, with the upper Bollinger Band at $14.26 beyond 
that.

   WHEAT:

   Wheat trade is 13 to 17 cents higher at midday with spring wheat leading 
once again as early harvest reminds us that the crop is poor this year, with 
estimates on the crop tour sitting in the mid 20 bushel-per-acre range. Harvest 
will continue to expand across Europe and the Black Sea with mixed results so 
far and Canada on deck while the dollar has faded below 92 points on the index 
to multi-week lows. KC holds at 30-cent discount to Chicago, with Minneapolis 
at a 219-cent premium, holding in the middle of the recent range. Weekly export 
sales were solid at 515,200 metric tons. KC September on the chart has support 
at the 20-day at $6.32 with resistance the upper Bollinger Band at $6.85.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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