DTN Midday Grain Comments 08/03 11:34

DTN Midday Grain Comments 08/03 11:34 Grains Are Down at Midday Nonthreatening forecasts are lower at midday with soybeans leading the way lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 6 points. The interest rate products are firmer. The dollar index is 15 points lower. Energies are higher with crude up 0.25 and ethanol up 1 to 2 cents. Livestock trade is mixed with cattle flat to higher while hogs are lower. Precious metals are lower with gold down $4. CORN Corn trade is a penny lower at midday with soybean trade appearing to limit downside in corn due to buying corn versus selling soybean spreading. Corn has been turning green briefly in short timeframes this morning. Market bulls argue December corn down in the mid $3.70 range is pricing in the better weather with some damage already done to yields. Yield estimate have been diving down in the 159-163 area the past few weeks. This is a year where there were a lot of things thrown at this crop in different growing seasons so yield results and crop estimates should be the driver moving forward for corn. Market bears argue, even with lower yields there is still limited reason to chase a rally in corn with the big old-crop carryover and harvest about to come in. Ethanol is up off higher energy trade, which is also limiting downside in corn here at midday and may help take us higher. The weekly export sales were 36,700 tons of old crop and 438,300 tons of new; lower prices should help bring on better sales. On the December chart support is at the fresh low at $3.75 with resistance at the 20-day moving average at $3.89. SOYBEANS Soybean trade is 12 to 14 cents lower at midday, meal is off $1.50-$2 and soybean oil is down around 70 points. Chart pressure and benign weather is what the trade is noting for the lower trade. The weekly export sales were 233,400 tons of old crop and 367,500 tons new. Meal sales were 87,100 tons old, and 57,700 tons new and soybean oil sales were 10,700 tons. The bulls and the bears are giving mixed thoughts on weather and yield effects, but due to the rise in ratings this week the better yield arguments have a better foot hold at this juncture. Due to the big move down this week, trade should be volatile the rest of the say and tomorrow. On the November chart, support is the $9.58 3/4 fresh low with the 200-day at $9.86 chart resistance. WHEAT Wheat trade is around 2 cents lower on Kansas City and Chicago to 5 cents lower on Minneapolis. The weekly export sales were 145,500 metric tons, a marketing year low which has limited upside along with spillover pressure from beans. Spring wheat harvest should continue to expand in coming days but harvest pressure appears to be limiting upside even with the poor crop. On the December Kansas City contract support is the lower bolliger band at $4.68 with resistance at 200-day moving average at $4.93 1/2. 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.