DTN Midday Grain Comments 08/30 11:35

DTN Midday Grain Comments 08/30 11:35 Grain Trade Trending Lower at Midday Trade is lower across the board at midday with new corn lows. 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 mostly lower. The dollar index is 55 higher. Energies are mixed with crude down 0.10. Livestock trade is mostly lower. Precious metals are lower with gold down $5.50. CORN Corn trade has seen selling pressure due to long liquidation and ahead of first notice day for September corn. Trade is around 3 cents lower at midday. Cooler temperatures may be slowing maturity slightly here is probably the biggest weather story at this point, but it is not a major concern. A flat to higher yield bias has been winning out. The weekly ethanol report showed production down .95%, stocks down 0.96%, and gasoline demand 2.3% higher. Ethanol futures are lower, while unleaded continues to spike boosting blender margins. Basis has been mostly steady but the roll to December and delayed price programs will add pressure in the near term. On the December chart support is the new low at $3.45 1/4 scored this morning. Resistance is at the 10-day moving average at $3.57. SOYBEANS Soybean trade is 3 to 6 cents lower with broader selling pressure during the day session despite another round of export sales news and no major forecast changes. Meal is $2 to $3 lower and oil is flat to 10 points lower. The morning forecast was slightly warmer. The daily wire showed sales of 131,000 metric tons of new crop beans sold to China with more near term business possible on the daily wire. On the November chart support was the 10-day at $9.39 which we have slipped below this morning with the recent low below that at $9.21, with the 20-day at $9.47 as resistance. WHEAT Wheat trade is flat to 3 cents lower at midday with trade struggling to extend the reversal seen yesterday. 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 another stab lower is possible this afternoon after the reversal failed last week. Canadian production estimates will be out tomorrow with the average guess around 26 million metric tons. 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 Tuesday with resistance at the 10-day at $4.32. 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.