DTN Midday Grain Comments 08/02 11:28

DTN Midday Grain Comments 08/02 11:28 Grains Mixed at Midday Wheat is sharply higher at midday, corn is firmer, and soybeans are weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 100. The interest rate products are weaker. The dollar index is 38 points higher. Energies are firmer with crude up $1.05. Livestock trade is weaker. Precious metals are weaker with gold down $5.30. CORN Corn trade is 5 to 6 cents higher at midday with support from the sharply higher wheat trade. Warmer weather looks to return for the western Belt, with the forecasts tracking cooler for the east, and much less excessive than looked earlier in the week. Ethanol margins remain solid but have narrowed with the corn rally, and sideways to lower energy complex with ethanol futures off slightly this morning. Corn basis is fading ahead of harvest and late-season corn movement. Weekly export sales were solid at 292,000 metric tons of old crop, 986,100 of new. On the September chart futures are above the 10-day at $3.60, and the 20-day at $3.54, with trade with the 50-day at $3.69 as the next round of resistance which where we are trading overnight and the upper Bollinger Band at 3.74, with the 200-day at $3.84 the next round higher. SOYBEANS Soybean trade is 3 to 5 cents lower at midday with trade seeing renewed selling pressure early, with trade drifting back towards even with support from the wheat at corn trade. Meal is 2.00 to 3.00 lower and oil is 10 to 20 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 as we await trade negotiations. Bean basis has remained steady with processors taking the lead with crush margins remaining exceptionally strong. Weather could provide more support if August weather ends up on the dry side with the forecast moderating the last couple of days. Weekly export sales were OK at 93,700 metric tons of old crop, 543,300 of new crop, 79,000 of old meal, 57,300 of new meal, and 15,500 of oil. On the September chart, trade is back below the upper Bollinger Band at 9.00, with support the 20-day at $8.62. WHEAT Wheat trade is 12 to 25 cents higher with trade scoring fresh highs again with the ongoing world weather concerns, with more focus on Australia now with the winter wheat racing to new highs again. 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 with production estimates again going lower. HRW basis has started to waver a bit on the plains as harvest wraps up and exports remain slow. Weekly export sales remain soft at 382,500 metric tons. 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 contract high at 5.92. 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.