DTN Midday Grain Comments 08/26 11:46

DTN Midday Grain Comments 08/26 11:46 All Grains Lower at Midday Grain trade is lower at midday in slow trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 95 points. The interest rate products are higher. The dollar index is 30 points higher. Energies are lower with crude down 30 cents. Livestock trade is lower. Precious metals are lower with gold down $17. CORN Corn trade is 2 to 3 cents lower at midday and nearly the daily lows; trade was up 3 to 4 cents overnight. Outside markets remain volatile and the uncertainty appears to be showing less interest in being long grains, plus the seasonal harvest pressure is close. No major weather issues are out there at this juncture. The weekly EIA report listed gasoline demand 5% lower, ethanol production 1.35% lower and stocks .36% larger. Nearby ethanol futures are 2 cents lower at midday with unleaded down 5 cents. Crude futures have remained below $40 yesterday and today. On the December chart support is at the early week low at $3.65, and then the contract term low at $3.57. Resistance is at the $3.80 1/2 20-day moving average, which was the overnight high. The next levels of resistance are the $3.86 weekly high then the $3.94 100-day moving average. SOYBEANS Soybean trade is 11 to 12 cents lower at midday in slow trade with leaking lower bias today. Meal is $3 lower and bean oil is 65 points lower. If the concerns over forward Chinese demand can cool off, scale down commercial buying should give some support this afternoon. An additional 210,000 metric tons of new crop announced as sold to unknown yesterday, and more sales are expected. The soybean crop would benefit from some additional rain especially in the east. The midday action illustrates the market is not viewing weather or demand items as bullish. On the November soybean chart our new contract low this week at $8.55 is support with resistance at $8.88, the previous contract low printed last week. The market did come up and fill the gap left under $8.88 last week which is a characteristic of a bear market when the market fills the gap then drops. WHEAT Wheat trade is 2 to 4 cents lower at midday with spillover pressure from beans. Wheat was trying to regain the losses from yesterday overnight, but that momentum was over around the start of the day session. Most contracts are testing recent lows or contract lows at midday. Without spillover support from row crops wheat is expected to keep the lower trend near term. The wheat export market has been quiet in recent days with the U.S. still at a competitive disadvantage to other origins of wheat. Chart resistance for the September Kansas City contract is at the $4.77 the 10-day moving average. Support is at the $4.61 3/4 fresh contract low reached Monday. 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.