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DTN Midday Grain Comments     07/23 11:17

   Grain Futures Mixed at Midday

   Trade is mixed at midday, soybean trade is positive.

By David Fiala
DTN Contributing Analyst

General Comments

   U.S. stock market indices are mixed with the Dow down 10. Interest rate 
products are lower. The dollar index is 9 higher. Energies are mixed with crude 
oil up $.80. Livestock trade is lower with lean hogs trading limit down. 
Precious metals are mixed with gold up $1.  

   CORN  

   Corn futures are 1 to 3 cents lower at midday in fairly quiet trade. The 
weather forecast remains mostly non-threatening despite some dry pockets 
developing. Basis has been fairly stable this week and trade is heavily 
oversold. Ethanol production was 1.7% higher on the week, with stocks .03% 
lower, and gasoline demand down 2.93% with the small stocks draw tied to better 
ethanol exports. Margins remain solid. With new lows put in today, December 
support will be $3.65, then $3.60. Resistance is at $3.80, the 10-day moving 
average, with the gap from Monday nearby resistance. So we have another gap 
down with a 1 1/2 cent drop from the $3.78 low on Friday to the $3.76 1/2 high 
Sunday night.  

   SOYBEANS

   Soybean futures are 8 to 13 cents higher at midday with trade favoring the 
old-crop months early. Meal is $3 to $6 higher and oil is flat to 10 points 
higher. Weather remains mostly non-threating for now, but some isolated areas 
will need an upturn in moisture soon. This appears to be the main item 
supporting trade. On the November chart, support is the contract low of $10.55 
which came in overnight, with resistance the 10-day moving average at $10.81. 
When trade broke below the old low Tuesday, significant stops were tripped, 
helping push trade lower. Soybean trade has been unable to sustain early day 
strength recently, so holding the gains for the balance of the session will be 
key today for the bull argument.

   WHEAT

   Wheat futures are narrowly mixed at midday in limited action across the 
three contracts. Wheat trade remains heavily oversold, but funds continue to 
add to their short position. Concerns over political issues in the Black Sea 
area have moved to the back burner. Weather remains mostly a non-issue for 
wheat at the moment with only isolated trouble spots around the world. On the 
chart, trade put in new lows and will look to hold support at $5.20 on the 
September Chicago contract, and $6.20 on the KC September contract.  

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered trading adviser.     

   David Fiala can be reached at dfiala@futuresone.com

   Follow David Fiala on Twitter @davidfiala 


(CZ)

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