DTN Midday Grain Comments 08/15 11:19

DTN Midday Grain Comments 08/15 11:19 Grains Lower at Midday Trade is lower across the board at midday with broad-based selling returning. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed at midday with the Dow 13 points higher. The interest rate products are lower. The dollar index is 49 higher. Energies are lower with crude 0.30 lower. Livestock trade is sharply higher. Precious metals are lower with gold down $12.30. CORN Corn trade is 5 to 6 cents lower at midday with trade setting back again after the improvement in crop ratings and wetter near term forecast. Spillover weakness from beans is also noted. Ethanol production margins are still solid despite the retreat of the energy complex, with corn fading to the lower end of the range offsetting, with ethanol futures mixed at midday. The weekly crop progress report showed conditions 2 percentage points better at 62% good to excellent, 12% poor to very poor. Progress remains near normal with silking at 97%, 61% in the dough, 1and 16% dented. On the December chart support is the new low for the move and year printed yesterday, and tested again this morning at $3.70 with first resistance at the 10-day of $3.79. SOYBEANS Soybean trade is 7 to 11 cents lower at midday due to rain pushing into the center of the belt again. Meal is $2 lower and bean oil is 50 to 60 cents lower. Rain coverage looks bigger for much of the western belt for this week. The weekly crop conditions were at 59% good to excellent, 1 percentage points lower week on week but that only temporarily supported beans. Progress was near normal at 94% blooming, and 78% setting pods. The weekly export inspections were good seasonally yesterday at 570,102 metric tons. China will be watched for more follow up buying with the weakness to start the week with another 132,000 metric tons announced this AM, along with 132,000 to unknown for new crop. Good demand is the argument of market bulls and rightfully so. Demand is very good but we are also battling record global production and supplies. NOPA crush will be out today with expectations of 142-44 million bushels crushed. On the November chart support becomes the fresh low for the move at $9.28, with the 10-day at $9.57 the first level of resistance on a bounce. WHEAT Wheat trade is 7 to 16 cents lower with trade still trying to find footing after the stronger finish yesterday failed to translate into overnight buying. The dollar has firmed sharply to start the week, but remains in the lower end of the range. The spring wheat harvest should continue to move along with some isolated disruptions with progress staying above normal. Russian harvest is moving along with strong yields as well, but logistics will remain the limiting factor. Weekly crop progress had spring wheat 33% good to excellent, 42% poor to very poor, 40% harvested, 5% above average, with winter wheat 97% complete, 1 percentage point above average. On the December Kansas City contract support is the $4.55 fresh low with resistance at the 10-day at $4.81. 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.