DTN Midday Grain Comments 08/24 11:26

DTN Midday Grain Comments 08/24 11:26 Grains Mixed at Midday Trade is mixed at midday after steam losses overnight. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow futures down 300 points. The interest rate products are lower. The dollar index is 180 points lower. Energies are lower with crude down 1.80. Livestock trade is mixed with hogs higher midday, cattle lower and feeders sharply lower. Precious metals are now lower with gold down $2. CORN Corn trade is 2 cents higher at midday with two sided trade seen around midday following a dime lower early this morning. The steep outside market pressure and spillover pressure from beans was behind the early pressure. The ProFarmer crop tour Friday after the close issued a yield projection of 164.3, which is substantially lower than the USDA. This was noted providing support, but with harvest pressure near, that may not be a reason to rally this week. Ethanol margins will remain under pressure, especially for blenders with ethanol values above unleaded values for the forward months. No major weather issues are out there at the moment, but the cooler weather could slow maturity a bit. The weekly crop condition ratings are expected to be steady to a 1% seasonal decline with maturity running about average. The weekly export inspections were decent at 883,987 metric tons. On the December chart support is at the early morning low of $3.65 1/2 then the contract low at $3.57 1/2. Resistance is at the $3.80 1/2 20-day moving average which we are back testing at midday. The next levels of resistance are the $3.84 higher printed last week then the $3.94 100-day moving average. The outside markets should keep trade exciting all week. SOYBEANS Soybean trade is 11 to 16 cents lower at midday with trade bouncing off the 34 cent lower trade seen early. Meal is flat at midday and bean oil is 90 points lower. The yield estimate given on Friday afternoon by the crop tour was 46.5 versus the 46.9 USDA number. This was viewed as negative plus the chart close was poor last week settling just above the weekly and contract lows. A new November contract low was scored this morning at $8.55. The weekly export inspections were softer at 210,128 metric tons. The lower dollar should actually be supportive to grains but other outside market pressure and Chinese demand concerns will limit buying on rallies. On the chart our new contract low is support with resistance at $8.88, the previous contract low. WHEAT Wheat trade is 1 to 4 cents higher at midday with trade bouncing off the dime lower trade early. The weaker dollar and lower futures action this month are adding to US export competitiveness. Futures are oversold but momentum remained down so follow-through selling was also noted for the early weakness. If shorts get nervous and start taking profits in a bigger fashion, wheat is due for a big up day or two. The weekly export inspections were soft at 277,892 metric tons. Chart resistance for the September Kansas City contract is at the $4.82 the 10-day moving average. Support is at the $4.62 fresh contract low reached today. 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.