DTN Midday Grain Comments 08/03 11:22

DTN Midday Grain Comments 08/03 11:22 Grains Mixed at Midday Corn and wheat remain firm at midday, with soybeans bouncing back from early selling. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 65. The interest rate products are weaker. The dollar index is 13 points weaker. Energies are narrowly mixed. Livestock trade is firmer. Precious metals are firmer with gold up $7.40. CORN Corn trade is 2 to 3 cent higher at midday with trade grinding sideways to higher with spillover support from wheat. The forecast looks warmer and drier in the near term, with the east seeing cooler weather. Ethanol margins remain solid but have narrowed with the corn rally, and sideways to lower energy complex with ethanol futures off a little this week, with trade back to 1.43 a gallon. Corn basis is fading ahead of harvest and late season corn movement. On the September chart futures are above the 10-day at $3.63, and the 20-day at $3.55, 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 1 to 3 cents lower with trade shaking off the selling tied to the fresh Chinese tariff announcements, and a forecast trending drier. Meal is 0.50 to 1.50 lower and oil is 20 to 30 points higher. Brazil remains at premium with the U.S. fall export program uncertain with bookings running behind off the west coast, with that likely to continue until trade progress is made. 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. On the September chart trade is back below the upper Bollinger Band at 9.02, with support the 20-day at $8.69. WHEAT Wheat trade is 1 to 7 cents higher with trade firming again during the day session, without the dramatic volatility of yesterday. 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 with Germany now down 25% on the year. 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 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.