DTN Closing Grain Comments    07/29 14:51
   Grains Extend Rally Thursday

   Grain and oilseed contracts posted solid rallies again Thursday with wheat
once again leading the way. Late in the session, old-crop soybean surged to a
new high, while corn seemed less than enthused.

By John Sanow
DTN Analyst

FARM MARKET NEWS - SOYBEAN AND WHEAT REPORT FOR Thu, July 29
Bank of Canada Noon exchange rate was 1.037 up 0.0013
Chicago soybeans closed slightly higher.

       NOV10   HI 9.90  1/4           NOV10    HI 9.90  1/4
              LOW 9.78  1/2                   LOW 9.78  1/2
             CLOSE9.88   Up 10              CLOSE 9.88   Up 10

             OLD CROP                             NEW CROP
Location     Basis 1mt  2mt  3mt Adj.  $/bu  $/mt BasisAdj.  $/bu  $/mt
ELEVATORS         +NOV1+NOV1+NOV10
CK Low       0.23                     10.11 371.48-0.45      9.43 346.49
CK High      0.40                     10.28 377.73-0.39      9.49 348.70
CK Average   0.33                -0.0210.21 375.30-0.42-0.85 9.46 347.74
Essex Cty    0.30                     10.18 374.05-0.46      9.42 346.13
Mdsx Low     0.10                      9.98 366.70-0.45      9.43 346.49
Mdsx High    0.35                     10.23 375.89-0.36      9.52 349.80
Mdsx Average 0.25                -0.1110.13 372.09-0.41-0.84 9.47 347.96
Hensall      0.35                     10.23 375.89-0.45      9.43 346.49
Bruce        0.35                     10.23 375.89-0.45      9.43 346.49
Putnam       0.35                     10.23 375.89-0.45      9.43 346.49
Princeton    0.23                     10.11 371.48-0.43      9.45 347.23
Durham       0.08                      9.96 365.97-0.38      9.50 349.07
Norfolk      0.47                     10.35 380.30-0.39      9.49 348.70
Trenton      -0.10                     9.78 359.35-0.40      9.48 348.33
Winchester   -0.12                     9.76 358.62-0.17      9.71 356.78
North Gower   N/A                                  N/A
Huron FOB    0.50                     10.38 381.40-0.35      9.53 350.17
Kent FOB     0.42                     10.30 378.46-0.44      9.44 346.86
Lambton FOB  0.42                     10.30 378.46-0.44      9.44 346.86
Middlesex FOB0.02 0.22  N/A  N/A       9.90 363.76-0.21      9.67 355.31

PROCESSORS
Hamilton     0.55  N/A  N/A  N/A      10.43 383.240.17      10.05 369.27
Windsor      0.90  N/A  N/A  N/A      10.78 396.10-0.03      9.85 361.93
Winchester   -0.02                     9.86 362.29-0.06      9.82 360.82

TRANSFER
Hamilton     0.55  N/A  N/A  N/A      10.43 383.240.10       9.98 366.70
Pt. Stanley   N/A                                 -0.35      9.53 350.17
Sarnia       0.30                     10.18 374.05-0.01      9.87 362.66
Owen Sound   0.35                     10.23 375.89-0.40      9.48 348.33
Sorel QC     0.59                     10.47 384.710.45      10.33 379.56

Toledo El.   0.49                     10.37 380.91-0.29      9.59 352.29


Bank of Canada Noon exchange rate was 1.037 up 0.0013
Chicago wheat closed moderately higher.
     SEP10     HI 6.32                    JUL11      HI 6.92  1/2
              LOW 6.13                              LOW 6.76
            CLOSE 6.27  1/2  Up 12                CLOSE 6.88  3/4  Up 10 1/4

Minni wheat closed slightly to moderately higher.
     DEC10     HI 6.77  1/4               SEP11      HI 7.00
              LOW 6.55                              LOW 6.90
            CLOSE 6.73  1/4  Up 14 1/2            CLOSE 6.98  1/4  Up 7 3/4

GFO Cash Wheat Prices - DEL Terminal
Current Crop 10   Soft White(C)  Hard Red(C)    Soft Red(C)    Red Spring(M)
Basis                 0.07          0.07           -0.71         -0.75
CAD $/bu              6.34          6.34            5.57          5.98
CAD $/tonne         233.10        233.10          204.55        219.68


Direct MarkHarvest 2010                 Harvest 2011
           DELIVERED BASIS              DELIVERED BASIS
Location   SWW(C)  HRW(C) SRW(C) HRS(M)  SWW(C)  HRW(C) SRW(C) HRS(M)
ELEVATORS
Brgssvll     N/A   -0.35   -1.00   N/A    N/A    -0.50   -1.15   N/A
London      -0.09  -0.50   -1.18   N/A   -0.69   -0.04   -1.31   N/A
Hensall     -0.05   N/A    -1.10   N/A   -0.40    N/A    -1.25   N/A
Trenton      N/A    N/A    -1.10   N/A    N/A     N/A    -1.25   N/A
Winchester   N/A    N/A     N/A   -0.90   N/A     N/A     N/A   -0.65
Essex        N/A    N/A    -1.33   N/A    N/A     N/A    -1.16   N/A
Norwich     0.15    N/A    -1.10   N/A   -0.25    N/A    -1.25   N/A
Mt. Elgin    N/A    N/A     N/A    N/A    N/A     N/A     N/A    N/A
Kent Bridge 0.15    N/A    -1.10   N/A   -0.25    N/A    -1.25   N/A
Chatham     -0.65  -0.50   -1.15   N/A    N/A    -0.60   -1.13   N/A
Brigden     -0.65  -0.50   -1.15   N/A    N/A    -0.60   -1.13   N/A
Palmerston   N/A   -0.32   -1.03  -0.62   N/A    -0.41   -1.15  -0.52
Mitchell    -0.05  -0.45   -1.10   N/A   -0.40   -0.60   -1.25   N/A
Thornton     N/A    N/A     N/A   -1.01   N/A     N/A     N/A    N/A
North Gower  N/A    N/A     N/A    N/A    N/A     N/A     N/A    N/A

TERMINAL
Sarnia      0.18   -0.18   -0.87   N/A   -0.30   -0.20   -1.08   N/A
Hamilton     N/A    N/A    -0.90   N/A    N/A     N/A    -0.85   N/A
Pt. Stanley  N/A    N/A    -1.35   N/A    N/A     N/A    -1.25   N/A

PROCESSORS
Toledo FM   0.85    N/A    0.02    N/A    0.82    N/A    -0.01   N/A

Toledo El. 5.90US         6.11CA         6.36US         6.64CA

GFO Contract Wheat Prices - DEL Terminal
Harvest 11        Soft White(C)  Hard Red(C)    Soft Red(C)    Red Spring(M)
Basis                -0.43         -0.06           -0.79         -0.58
CAD $/bu              6.46          6.82            6.09          6.40
CAD $/tonne         237.29        250.72          223.87        235.19

(C)-Basis over the Chicago Board of Trade futures
(M)-Basis over the Minneapolis Grain Exchange

FEED GRAINS
Bayport Wheat             225.00 - 228.00
Bayport Oats              263.00
Bayport Barley            191.00
FOB Hm Soymeal            373.03 - 374.13
DDG's FOB Sarnia          125.00

DTN Midday Grain Comments     07/29 11:28

   All Grains Lightly Higher at Midday

   Trade is firm at midday due some chart buying and continued support due to
world weather and production concerns.

By David Fiala
DTN Contributing Analyst

MARKET SUMMARY:  

   The U.S. stock market indices are lower with the Dow futures down 108. The
interest rate products are mixed. The dollar index is 60 lower. Energies are
higher with crude up $0.95. Cattle are lower and hogs are higher. Precious
metals are lightly higher.

GENERAL COMMENTS

CORN

   Corn trade is called 1 to 2 higher at midday after due to follow-through
buying. The trade opened strong and traded nearly 10 higher before setting
back; a lower close would be negative on the chart after the higher start. The
strength started yesterday due to market discussions about the poor Russian and
EU weather. The strength continued overnight following the EU's decision to
approve six varieties of GE corn for import yesterday. This removed the zero
tolerance GE policy for corn that was previously seen there and opens the door
for US exports. The EU feed industry normally takes around 7 million tons of
feed wheat from Russia, so this could be a precaution against possible export
restrictions there. Domestically, the uncertainty of the upcoming crop should
continue to limit selling interest but active trade should continue within the
recent range. The chart areas to focus on the rest of the week are the 200-day
moving average up at $4.02 and then support down at the $3.79-83 area where we
find the 100- and 50-day moving averages. The weekly export sales were reported
at 432,300 tons of old crop and 528,100 tons of new crop. Combined, they were
above expectations.

SOYBEANS

   Soybean trade is called 5 to 9 higher at midday due to outside market
support. Meal is $2 to $3 higher and oil around 20 higher at midday. The market
has maintained some weather premium ahead of pod fill, but spillover support
from the wheat market should limit downside. On the chart, the trade moved
above the 10-day yesterday, which has the momentum back to the upside. Nearby
resistance is now $9.90, and support is at the 20-day at $9.54. The weekly
export sales came in at 339,000 tons of old crop beans and new crop sales were
1.114 million tons. Meal sales were reported at 23,800 tons of old crop and
43,000 tons of new crop. Oil sales were 3,200 tons of old crop and 4,300 tons
of new crop.

WHEAT

   Wheat trade is called 6 to 10 higher at midday due to outside market support
and continued global production concerns. Reports from Russia indicated that
yields have been reduced by 10 percent from last year, with some areas seeing
losses as much as 30 percent. This has lead to several rumors out of both
Russian and Ukraine about possible export bans and cargo cancellations. The
recent rally seems to be fear driven, but most analysts agree that once the
losses are quantified, there will be sufficient stocks in the FSU, EU, and
other areas to absorb the yield loss. The U.S. supply situation remains
comfortable and the widening carry and poor national basis levels still
indicate bearish fundamentals. The market is trading the uncertainty of world
production and expected bigger U.S. exports looking forward, but this whole
rally has been driven by a weather market that is half way around the world. So
the uncertainty alone should be enough to limit downside. Market bears are also
hesitant about stepping in front of the upward momentum as margin losses from
last year's June rally are still fresh in their minds. It is difficult to point
out chart resistance levels now that we printed new highs for the move again.
Weekly wheat export sales were reported at 919,900 tons, which was nearly
double expectations.

   David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Commodity Trading Advisor.



(SK)

Copyright 2010 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.

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