DTN Midday Grain Comments 08/20 10:59

DTN Midday Grain Comments 08/20 10:59 All Grains Higher at Midday Trade is higher across the board at midday. 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 mostly lower. The dollar index is 35 lower. Energies are mixed with crude 0.40 higher. Livestock trade is mixed with fat cattle leading. Precious metals are higher with gold up $20. CORN Corn trade is 1 to 3 cents higher with support from the crop tour finding lower yields overall. Pro Farmer crop tour will wrap up today with a national yield number coming out tomorrow, with Minnesota showing solid yields today. Ethanol margins will remain under pressure with the end of summer driving season coming soon, and crude oil may soon dip below $40 with concerns over forward demand. Ethanol futures are flat this morning. Weekly export sales were strong at 282,700 metric tons of old crop, and 576,400 of new crop. Also the USDA announced a 193,040 metric tons sold to Mexico for new crop. 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 $3.82 20-day, just below where we are at midday. SOYBEANS Soybean trade is 5 to 11 cents higher at midday with trade making new lows overnight before finding some buying on calmer outside commodity markets. Meal is $3 to $4 higher, and oil is 15 to 25 higher. Concerns about the Chinese economy will likely continue to keep trade defensive on further outside weakness. 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, with Western Iowa being a bright spot so far. The export market has been quiet this week despite the sharp set back in prices, but the weekly sales were decent at 46,400 metric tons of old crop sales, 784,400 of new crop, 62,800 of old crop meal, 170,000 of new crop meal, and 7,100 of oil. November chart support is now the new contract lows at $8.91. WHEAT Wheat trade is 5 to 10 cents higher across the three contracts at midday with light buying vs. short positions at midday with support from the firmer row crop trade and weaker dollar. 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. The weekly export sales were disappointing at 314,400 metric tons. Chart resistance for the September Kansas City 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.