DTN Midday Grain Comments     07/28 10:46

   Corn Futures Edge Higher Midday Wednesday

   Corn is 1 to 3 cents higher, soybeans are narrowly mixed and wheat is 14 to 
22 cents higher.

David M. Fiala
DTN Contributing Analyst

   MARKET SUMMARY:

   The U.S. stock market is mixed with the Dow down 25 points. The U.S. Dollar 
Index is 0.11 higher. Interest rate products are weaker. Energies are mixed 
with crude up $0.25. Livestock trade is mixed. Precious metals are mixed with 
gold off $0.50.

   CORN:

   Corn trade is 1 to 3 cents higher at midday Wednesday with weaker spreads as 
September gets closer to going to carry versus the December with overall 
range-bound action continuing as heat holds in the Western Corn Belt. Ethanol 
margins look stable to start the week with energies moving more sideways and 
the weekly report showing production down 14,000 barrels, with stocks up by 
215,000 barrels. Brazil will continue to move along with the end of the second 
crop season with frost issues still being watched as they reported book 
significant amounts of cargos from Argentina, while near-term weather looks 
more mixed into August for the U.S. Corn basis continues to fade with cash 
inverses likely to see more pressure as wheat and southern sorghum start to 
become available to feed. On the September contract, resistance remains at 
$5.60 with further support at the lower Bollinger Band at $5.22.

   SOYBEANS:

   Soybeans are narrowly mixed with trade bouncing back from early weakness 
again to stay rangebound with meal weakness continuing to limit strength. Meal 
is $3.00 to $4.00 lower and oil is 0.65 cent to 0.75 cent higher. The weather 
pattern is warmer and drier short term with more rain coverage in the extended 
forecast for many going 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. On 
the September soybean chart, resistance is at the 20-day at $13.73, which we 
are just below at midday, with the upper Bollinger Band at $14.30.

   WHEAT:

   Wheat trade is 14 to 22 cents higher at midday with spring wheat leading 
once again as early harvest reminds us that the crop is poor this year. Harvest 
will continue to expand across Europe and the Black Sea with mixed results so 
far and Canada on deck while the dollar once again finds support above 92 
points on the index. KC holds at 35-cent discount to Chicago. widening 
Wednesday, with Minneapolis at a 210-cent premium holding in the middle of the 
recent range. KC September on the chart has support at the 20-day at $6.31 with 
resistance the upper Bollinger Band at $6.84.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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