DTN Midday Grain Comments 08/07 11:34

DTN Midday Grain Comments 08/07 11:34 All Grains Higher at Midday Trade is lightly higher across the board at midday with dry Iowa forecasts. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the DOW futures down 5 points. The interest rate products are mixed. The dollar index is 7 points lower. Energies are mixed with crude down 0.90. Livestock trade is mixed with hogs higher and cattle sharply lower. Precious metals are mixed with gold down $0.40. CORN Corn trade is 3 to 4 cents higher at midday due to localized moisture concerns along with light short profit taking. The weekly export inspections were good at 979,006 metric tons. The USDA announced 180,800 metric tons of new crop sold to Mexico. Ethanol margins remain stable. The weekly crop progress report is expected to show steady conditions this afternoon. The August USDA World Agricultural Supply and Demand Estimates (WASDE) is due out on Thursday morning. The trade is expecting a drop in the yield and production. The average trade guess is at 166 bushels per acre versus 170.7 last month giving a production umber of 13.841 billion bushels versus 14.255 a month ago. The average new crop carryover estimate is 1.966 billion bushels versus 2.325 a month ago. The world carryover estimate is expected to be at 194.7 million metric ton versus 200.8 on the July report. On the December chart, support is at the 10-day at $3.83 with resistance at the 200-day at $3.89. SOYBEANS Soybean trade is 7 to 9 cents higher at midday with trade working to consolidate in the lower end of the recent trading range. Meal is $4 to $5 higher and oil is 20 to 30 lower. The weekly export inspections were strong this morning at 685,697 metric tons. The USDA announced 206,000 metric tons of old crop sold to unknown. Cooler temperatures will limit stress in the week ahead with some drier areas. Basis is expected to remain mostly steady in the near term with some processor improvement as demand remains solid. The weekly crop progress is expected to show steady conditions. WASDE is expected to have a reduction in the soybean yield from 48 to 47.4 with a new crop carryover decline to 426 from 460 million bushels on the July report; the range of estimates is 369-474 million. The world carryover is expected to drop to 92.2 million metric ton from the 93.5 million metric ton number last month. On the November chart we are consolidating around the 100-day and 50-day at midday in the $9.66 area; notable support is the $9.55 1/2 low printed last week with resistance at the $9.85 10-day moving average. WHEAT Wheat trade is 2 to 5 cents higher across the three contracts at midday with light short profit taking following the weakness this past month. The weekly export inspections were better at 586,149 metric tons. Spring wheat harvest should continue to expand in coming days but harvest pressure is expected to be limited with the poor crop. The weekly crop progress report should show further spring wheat harvest ahead of normal with the abandoned acres, and conditions steady. The new crop US trade guess for the August USDA WASDE carryover is 907 million bushels versus 938 on the last report. The world wheat carryover average trade guess is at 256.7 million metric tons versus 260.6 on the last report. On the December KC contract support is the lower Bollinger band at $4.65, with trade just below the 200-day $4.93 which is chart resistance. 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.