DTN Midday Grain Comments 08/19 11:13

DTN Midday Grain Comments 08/19 11:13 Grains Mixed 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 200 points. The interest rate products are lower. The dollar index is 20 lower. Energies are lower with crude 1.70 lower. Livestock trade is sharply lower. Precious metals are mixed with gold up $12. CORN Corn trade is 2 to 3 cents higher at midday with supported from yield projections coming in a bit lower than expected on the second day of the crop tour. The Pro Farmer crop tour will continue today in Minnesota, Iowa and Illinois, after Nebraska and Indiana were pegged below USDA projections. Ethanol margins will remain under pressure with the end of summer driving season coming soon. The September Crude oil contract dropped to $40.60 so we may have a "3" in front of crude prices very soon. The weekly ethanol production report showed production unchanged with stocks 0.17% higher, and gasoline demand 0.20% higher. On the December chart support is at the recent contract low of $3.57 1/2 with resistance at the $3.80 10-day moving average, and the $3.84 20-day. SOYBEANS Soybean trade is 6 to 9 cents lower at midday with a light bounce from the new contract lows made this morning. Meal is flat to $1 lower and oil is 30 to 40 points lower. Concerns about the Chinese economy continue to encourage selling in the soybeans, energy, and metals. 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, although pod count has generally been lower so far. The export market has been quiet this week despite the sharp set back in prices, which is surprising so far. November chart support is now the new contract lows at $8.91. WHEAT Wheat trade is 1 to 4 cents lower at midday with spillover pressure from beans and long liquidation. Wheat is retesting the recent contract lows. Trade remains fairly oversold, and is likely due another profit taking rally, but it would likely struggle to sustain a bounce without support from the outside markets or the row crops. The rest of the Northern Hemisphere harvest should continue in the near term with estimated production expected to edge a bit further lower. Chart resistance for the September KC contract is at $4.85 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.