DTN Midday Grain Comments 08/25 11:21

DTN Midday Grain Comments 08/25 11:21 Wheat, Corn Lower at Midday Soybeans are a bit higher at midday, corn and wheat are lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 365 points. The interest rate products are higher. The dollar index is 130 points higher. Energies are higher with crude up 1.30. Livestock trade is mostly higher at midday. Precious metals are mixed with gold down $18. CORN Corn trade is 1 to 3 cents lower at midday after trading a nickel higher overnight. A stronger dollar today appeared to limit buying enthusiasm along with soybeans setting back from their initial higher trade. No major weather issues are out there at this juncture. The condition report remained at 69% good to excellent but 1% moved from good to excellent. This is down from 73% a year ago. Progress listed 85% of the crop in the dough stage versus 81% on average and 39% dented versus the 43% average. 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 continue to trade near. The next levels of resistance are the $3.86 high printed overnight then the $3.94 100-day moving average. SOYBEANS Soybean trade is 3 to 6 cents higher at midday with trade finding support from the firmer outside markets and the return of commercial buying. Meal is $0.50 to $1.50 higher and oil is 25 to 35 points higher. If the concerns over forward Chinese demand can cool off, commercial buying should support trade a bit, with an additional 210,000 metric tons of new crop announced as sold to unknown today. Crop conditions were unchanged with last week at 63% good to excellent; this is down from 70% a year ago. Crop progress was listed at 87% setting pods versus the 88% average. On the chart our new contract low at $8.55 is support with resistance at $8.88, the previous contract low printed last week, and we tested this area overnight. WHEAT Wheat trade is 6 to 10 cents lower at midday with early strength giving way to selling with the sharply stronger dollar. Trade is now back near the recent lows with Chicago wheat extending its premium to Kansas City, and is edging above Minneapolis values. The row crops likely need to bounce to trigger bigger short profit in wheat in order to get us out of these oversold conditions. Spring wheat harvest continues to run well ahead of normal at 75% complete vs. 47% on average. Chart resistance for the September Kansas City contract is at the $4.80 the 10-day moving average, which we tested overnight. Support is at the $4.62 fresh contract low reached yesterday. 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.