DTN Midday Grain Comments     07/08 11:06

   Grains Mixed at Midday

   The U.S. stock market is mixed with the Dow flat. The dollar index is 25 
points lower. Interest rate products are mixed. Energies are narrowly mixed 
with crude flat. Livestock trade is mostly lower. Precious metals are firmer 
with gold up $8.

David Fiala,DTN Contributing Analyst

   CORN

   Corn trade is narrowly mixed at midday with trade bouncing back off the 
overnight lows as the forecast trended back hotter for the week. The forecast 
has warmer conditions and spotty rain for most areas into mid-July, with the 
second week trending warmer on some models overnight. The weekly ethanol report 
showed production 14,000 barrels per day higher, while stocks were 456,000 
barrels higher, the first rise in some time with concerns about forward demand 
building. On the September contract, support is the 20-day at 3.35 with 
resistance the upper Bollinger Band at $3.51.

   SOYBEANS

   Soybean trade is 2 to 3 cents lower at midday with choppy trade ongoing at 
the upper end of the range and little fresh news. Meal is flat to $1.00 lower 
and oil is 30 to 40 points lower. The real remains at the midpoints of the 
recent range vs. the dollar. Crush margins have seen little change in recent 
days. Drier weather into mid-month for many will add support but we remain 
aways from the key podfill time frame. The August soybean chart resistance is 
the $9.03 fresh high, with support the 20-day at $8.76.

   WHEAT

   Wheat is 7 to 17 cents higher at midday with harvest pressure fading more 
along with the crop estimates for Europe and Russia trending lower, which is 
encouraging short covering. The ruble remains in the recent range vs. the 
dollar with Russia winning export tenders so far this week. Kansas City is at a 
57-cent discount to Chicago on the August, while Minneapolis is back to a 8 
cent premium. The September Kansas City chart support is the lower Bollinger 
Band at $4.22, and resistance the 20-day at $4.44, which we are above at midday.

   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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