DTN Midday Grain Comments 08/22 11:02

DTN Midday Grain Comments 08/22 11:02 Grains Mixed at Midday Wheat trade is the bright spot at midday with row-crop pressure continuing. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 15. The interest rate products are mostly higher. The dollar index is 12 lower. Energies are mostly higher with crude up 1.60. Livestock trade is sharply lower. Precious metals are mixed with gold up $1.40. CORN Corn trade is 4 to 5 cents lower at midday with trade drifting lower with trade seeing spillover pressure from the soybeans. Weekly ethanol production was 1,000 barrels per day higher, with stocks 242,000 barrels higher with futures continuing to work lower going forward. Corn basis will likely continue to fade with more harvest activity building with the advanced crop across the south with more stability seen early this week. The crop tour has shown strong yields as it works through Nebraska and Indiana. On the December chart, futures have support at the lower Bollinger band at $3.69 and resistance is the 50-day at $3.73. SOYBEANS Soybean trade is 11 to 14 cents lower at midday with trade seeing light selling with a lack of fresh trade news and good potential seen on a Midwest crop tour this week. Meal is $3 to $4 lower and oil is 30 to 40 points lower. Basis remains wide but has slowed the rate of erosion so far this week. Pod counts have been very strong so far on the tour. We have seen some improvement in nearby exports and early new-crop bookings, with the program still light for the fall off the Pacific Northwest. The specifics of the trade aid to farmers appear to be closer to being announced with soybeans the focal point of the program. On the November chart, support is the lower Bollinger band at $8.61, with resistance the 50-day at 8.86. Resistance is the $9.22 two-month high. WHEAT Wheat trade is mixed at midday with Chicago and Minneapolis trade turning higher and trading nearly a dime off the overnight lows with aggressive exports out of the Black Sea keeping pressure on the market. Spring wheat harvest should continue to move along at a good clip with varied yields so far and heading quickly for the home stretch. The U.S. dollar has turned sharply lower through midweek. Matif wheat is off again this morning, holding just above $200 a ton. Australia remains on the dry side with the crop pace ahead of normal as well with some relief for some areas. On the December KC chart, we have support at the 50-day at $5.47, with resistance the 100-day at $5.60. 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.