Four Star Supply, Inc.

DTN Midday Grain Comments 07/19 11:08

DTN Midday Grain Comments     07/19 11:08

   All Grains Higher at Midday

   Soybeans lead broadly firmer trade.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are firmer with the Dow 60 higher. The dollar 
index is 35 higher. Interest rate products are firmer. Energies are mixed with 
crude $0.10 lower. Livestock trade is firmer with hogs leading. Precious metals 
are firmer with gold $2.30 higher.


   Corn trade is 6 to 8 cents higher at midday with trade following soybeans 
higher after the broad selling to start the week. Cooler temps look to build 
the second half of the weekend with seasonal weather into next week. Ethanol 
margins will remain tight with plentiful supply and summer driving season 
coming to an end and ethanol futures just above $1.45 a gallon. Harvest should 
be on the downhill slide for Brazil with more signs of imports into the SE 
U.S., with mixed world conditions. Basis has started to moderate in some areas 
as well, with intramonth spreads firmer even with the weakness this a.m. On the 
September nearby chart, support is at the 50-day at $4.26 which we have tested 
this morning with the 100-day below that at $4.03, with resistance the 10-day 
at $4.37.


   Soybean trade is 20 to 23 cents higher with trade taking off late in the 
overnight session and seeing more buying during the day session with products 
leading values along with spread unwinding meal is $6.00 to $7.00 higher and 
oil is 20 to 30 points higher. World export demand remains slow, with the ral 
still cheap as it has been unable to sustain gains. Weather will come into 
focus more as we head towards August and podfill season. The September chart 
support is the 50-day at 8.82, with the next level up the 100-day at 8.96, with 
the 20-day the next round at $9.00, which we are above at midday, with 200-day 
at $9.16 the next level up.


   Wheat trade is 6 to 13 cents higher with trade seeing spillover support from 
the row crops. The Kansas City/Chicago spread is wider this a.m. The corn/HRW 
spread is wider as well. The warmer weather should allow harvest to progress to 
move to the home stretch, while Europe makes progress, and the Black Sea 
continues to see mixed yields as harvest rolls on. The dollar is just below 97 
on the index with firmer action this morning. The September Kansas City chart 
support is the recent low at $4.31 with the first resistance the 10-day at 
4.45, with the 100-day at 4.50 the next round up.


   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser
He can be reached at 
Follow him on Twitter @davidfiala


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