DTN Midday Grain Comments 08/01 11:45

DTN Midday Grain Comments 08/01 11:45 All Grains Lower at Midday Trade is lower across the board at midday with beans leading the way after better weekly ratings. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 75 points. The interest rate products are higher. The dollar index is 17 points higher. Energies are lower with crude down 1.50. Livestock trade is mixed. Precious metals are mixed with gold up $5.30. CORN Corn trade is 7 cents lower with trade seeing increased selling with pressure spilling over from soybeans with greater volume than we've seen the last couple of trading days. The forecast continues to bring cooler temps and mixed rain coverage. Ethanol margins look to remain stable in the near term with energies remaining at the upper end of the range with corn, unleaded and ethanol futures all lower this morning. Corn basis remains soft with plenty of old crop stocks still around with spread trade remaining soft. The weekly crop progress were down 1 percentage point to 61% good to excellent, 13% poor to very poor, with 85% silked, same as average with 23% in the dough, 2 percentage points behind average. On the December chart support is at the fresh low at $3.76 with resistance at the 200-day at $3.89. SOYBEANS Soybean trade is 32 to 36 cents lower at midday with trade setting back to the lower end of the range after the improved condition reports and better weather. Meal is $10 to $11 lower, and oil is 65 to 75 lower. Cooler temperatures will limit stress in the week ahead with the rains in the extended forecast needing to materialize. The weekly crop progress showed 2% improvement to 59% good to excellent, and 13% poor to very poor, with 82% blooming, 2 percentage points ahead of average, with 48% setting pods 3 percentage points ahead of average. Basis is expected to remain mostly steady in the near term. On the November chart support is the 50-day at $9.64, with the 200-day at $9.86 now resistance. WHEAT Wheat trade is 2 to 7 cents lower at midday with trade holding up better than the row crops so far. Early spring wheat harvest is going with 9% harvested, same as average on the weekly report with spring wheat conditions down 2% to 31% good to excellent, and 43% good to excellent. Winter wheat harvests is 88%, 2% ahead of average. The dollar remains near year lows, but the US will continue to struggle for near term business with ample world supplies with today's tenders going to European/Black Sea origin. Trade continues to add carry in the spring wheat, with winter wheat keeping the ample carry in place. On the December Kansas City contract support is the 100-day at $4.95. Resistance is at the 10-day at $5.11 then 50-day moving average at $5.13. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.