DTN Midday Grain Comments 08/01 11:41

DTN Midday Grain Comments 08/01 11:41 Soybeans Deeply Down at Midday Wheat trade remains firmer at midday, with row crops pulling back led by soybeans. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 5. The interest rate products are firmer. The dollar index is 20 points higher. Energies are weaker with crude down $1.10. Livestock trade is mixed. Precious metals are weaker with gold down $6.90. CORN Corn trade is 2 to 3 cents lower at midday with spillover from soybeans pressure and a little cooler forecast. Warmer weather looks to return the second half of the week which should add some support with rain forecasts mixed, although the heat has backed down a little from some of the stronger forecasts. Ethanol production was off 10,000 barrels per day, with stocks down 314,000 barrels, and ethanol futures are off about a penny. Corn basis is fading ahead of harvest and late-season corn movement. On the September chart, futures are above the 10-day at $3.56, and the 20-day at $3.52, with trade with the 50-day at $3.70 which are right at overnight and the upper Bollinger Band at 3.72, with the 200-day at $3.84 the next round higher. SOYBEANS Soybean trade is 14 to 17 cents lower at midday with trade giving back some of the Tuesday gains with increased trade tensions, and a cooler forecast. Meal is $4.00 to $5.00 lower and oil is 5 to 15 points lower. Brazil remains at premium with the U.S. fall export program uncertain with bookings running behind off the west coast, while nearby movement has remained solid with PNW program in neutral. Bean basis has remained steady with processors taking the lead with crush margins remaining exceptionally strong. Weather could provide more support if August weather keeps trending drier and warmer with more moderate overnight runs. On the September chart trade is back just below the upper Bollinger band at 9.00, with support the 20-day at $8.60. WHEAT Wheat trade is 1 to 8 cents higher at midday with trade working to consolidate at the upper end of the range with concerns about European production overshadowing the trade issues so far, with winter wheat scoring fresh highs for the move. Spring wheat progress will pick up with the warmer weather returning this week with harvest expanding. Russian harvest continues to move along as well with yields remaining below last year's levels as they get into spring wheat harvest. Western Europe continues to see excessive heat with harvest heading towards the home stretch. HRW basis has started to waver a bit on the plains as harvest wraps up and exports remain slow. On the September Kansas City chart, we are back above all the major moving averages with trade with the 50-day at 5.23, and the 100-day at 5.30 with the next resistance the recent high at $5.69. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.