DTN Midday Grain Comments 08/29 11:01

DTN Midday Grain Comments 08/29 11:01 All Grains Lower at Midday Trade is lower across the board at midday with new corn and wheat lows. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 2 points. The interest rate products are higher. The dollar index is 30 lower. Energies are mixed with crude down 0.65. Livestock trade is lower. Precious metals are higher with gold up $8.00. CORN Corn trade is 2 to 4 cents lower at midday with continued selling pressure with the negative tone continuing as harvest draws closer. Cold temperatures should have the market watching for some early northern frost risks, and slower maturity, but the biggest threat remains a few days off. Ethanol margins will get a boost from unleaded gasoline spiking from the hurricane causing refineries to be closed; this will support blender margins. The weekly crop progress report left conditions unchanged at 62% good to excellent, 12% poor to very poor, 86% in the dough, 1% behind average, dented 44%, 7% behind average, and 6% mature, 4% behind average. Mexico bought 226,000 metric tons of new crop corn. On the December chart support is the new low at $3.47 scored this morning. Resistance is at the 10-day moving average at $3.58. SOYBEANS Soybean trade is 2 to 5 cents lower with trade seeing pressure from improved crop conditions and spillover market pressure. Meal is flat to $1 lower and oil is 30 to 40 points lower. Some of the colder weather is not viewed as the best thing for beans and there is always a frost risk when lows get down in the 30s, with trade watching forecasts closely in the near term with the second week of September the biggest concern for now. The overnight runs were a bit more mild than yesterday. Heavy rains from Hurricane Harvey may add some complications in the south. The weekly crop progress had conditions 1 percentage point better at 61% good to excellent, 11% poor to very poor, 93% setting pods, 1 percentage point above average, and 6% dropping leaves, 1 percentage point above average. The daily wire showed sales of 226,000 metric tons of new crop beans sold to China. On the November chart support is the 10-day at $9.37 which we are testing this morning with the recent low below that at $9.21, with the 20-day at $9.47 as resistance. WHEAT Wheat trade is 3 to 8 cents lower at midday with new lows being made with the ongoing fund selling to keep pressure on the market. Trade is oversold, which should translate into bigger short profit taking at some point ahead of winter wheat planting, but funds continue to be get rewarded for fresh shorts, so we continue to go lower. Canadian production estimates will be out this week. The weekly crop progress report put harvest progress at 76%, 10 percentage points ahead of normal. Egypt has been aggressive in securing Black Sea origin wheat again. On the December Kansas City contract support is the $4.20 fresh low printed today with resistance at the 10-day at $4.36. 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.