DTN Midday Grain Comments 08/18 11:15

DTN Midday Grain Comments 08/18 11:15 Wheat, Beans Lower at Midday Corn is slightly higher at midday, soybeans and wheat are lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow down 15 points. The interest rate products are higher. The dollar index is 20 higher. Energies are narrowly mixed with crude 0.30 higher. Livestock trade is lower. Precious metals are lower with gold down $4. CORN Corn trade is 1 to 3 cents higher at midday with some two sided trade early. Disappointing finding in the eastern Corn Belt seem to be providing the strength so far, with outside markets working against the trade. Many areas of the corn belt have caught moisture over the last few days. The Pro Farmer crop tour will continue today in Nebraska and Indiana with the west expected to remain strong. The weekly crop progress report showed a slight decline to 69% good to excellent, and 10% poor to very poor; 71% was in the dough vs. 66% on average, and 21% was dented vs. 28% on average. Ethanol margins will remain under pressure especially with the summer driving season winding down, and ethanol futures are nearing the $1.40 level, although they are slightly higher this morning. On the December chart support is at the recent contract low of $3.57 1/2 with resistance at the $3.81 10-day moving average. SOYBEANS Soybean trade is 10 to 15 cents lower overnight with concerns about forward Chinese demand helping to sink futures at midday with the Asian markets setting back again, with trade holding just above the recent lows. Rains working across many areas of the belt the next few days should help finish the crop in those areas. Crop tours this week will also give more insight into the crop size with variable results so far, although yields are hard to extrapolate from pod count. The weekly crop progress report had conditions unchanged at 63% good to excellent, 11% poor to very poor, 93% blooming, 2% behind average, and 79% setting pods, same as average. November chart support is at $9.01 then the $8.95 contract low. Resistance is at the $9.28 1/2 high of the past few days, then the 10-day at $9.40. WHEAT Wheat trade is 4 to 7 cents lower with spillover pressure from the row crop trade and the firming dollar this morning. Trade remains fairly oversold, and is likely due another profit taking rally, but it would likely struggle to be sustained without support from the outside markets. The weekly crop progress report had conditions steady at 70% good to excellent, 8% poor to very poor, with 53% harvested vs. 31% on average. Weather this week should slow the spring wheat harvest momentarily. Chart resistance for the September Kansas City contract is at $4.87 the 10-day moving average. Support is at the $4.69 contract low reached last Wednesday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at [email protected] Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.