DTN Midday Grain Comments 08/06 11:50

DTN Midday Grain Comments 08/06 11:50 Grains Mixed at Midday Wheat is sharply higher with corn flat, and soybeans lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 5. The interest rate products are weaker. The dollar index is 16 points higher. Energies are firmer with crude 1.15 higher. Livestock trade is mixed. Precious metals are weaker with gold down $3.40. CORN Corn trade is flat to 1 cent higher at midday with trade holding near the upper end of the range in quiet action so far, with trade able to shrug off the weaker soybeans so far. The forecast looks warmer and drier in the near term, continuing to push the crop along. Ethanol margins remain solid but have narrowed with the corn rally, with ethanol futures edging lower despite the solid energy complex this morning. Corn basis is fading ahead of harvest and late-season corn movement. Weekly export inspections remained solid at 1.287 million metric tons. Weekly crop progress is expected to stay well ahead of normal, with conditions mostly steady. On the September chart futures are above the 10-day at $3.65, and the 20-day at $3.56, with trade closing the week right at the 50-day at $3.68 and the upper Bollinger Band at 3.77, with the 200-day at $3.84 the next round higher. SOYBEANS Soybean trade is 8 to 12 cents lower at midday with trade seeing pressure from trade concerns and mixed weather as we get into pod-fill season. Meal is $2.00 to $3.00 lower and oil is flat to 10 points lower. Another round of tariff threats has helped to maintain the Brazil premium and encourage selling nearby. 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 limiting rain in some areas. Weekly export inspections were better than expected at 893,109 metric tons. Weekly crop progress is expected to remain well ahead of normal, with conditions fairly steady. On the September chart trade is back below the upper Bollinger Band at 9.06, with support the 20-day at $8.63. WHEAT Wheat trade is 10 to 15 cents higher at midday with worldwide production concerns continuing to add support. 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 deeper 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. Weekly export inspections remain soft at 325,486 metric tons. The weekly crop progress is expected to show winter wheat harvest almost complete and spring wheat conditions steady, and harvest progress about normal. 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.