DTN Midday Grain Comments 08/23 11:50

DTN Midday Grain Comments 08/23 11:50 Grains Trending Lower at Midday Lower trade at midday, albeit off the lows of the day. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 115. The interest rate products are mostly higher. The dollar index is 25 higher. Energies are mixed with crude down 0.25. Livestock trade is mixed. Precious metals are weaker with gold down $7.00. CORN Corn trade is 3 to 4 cents lower at midday with trade firming back from 6-7 cent lower trade early in the day session amid broad weakness. Ethanol futures continue to track lower, touching the 1.30 area, keeping blender margins pretty stout. Corn basis will likely continue to fade with more harvest activity building into the coming week with some stability showing up this week. The crop tour has shown strong yields as expected. Weekly export sales were 173,400 metric tons of old crop, and 1.054 million of new crop. On the December chart futures have support at the recent low at $3.61 scored today and resistance is the 50-day at $3.73. SOYBEANS Soybean trade is 3 to 6 cents lower at midday with selling continuing as trade concerns continue to bubble up with dime lower action early on. Meal is $1 to $2 lower and oil is flat to 10 points lower. Basis remains wide but has slowed the rate of erosion so far this week with concerns still building for fall. 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 PNW which is the biggest concerns going into fall. The specifics of the trade aid to farmers appears to be closer to being announced with the soybeans the focal point of the program. Weekly export sales were good at 152,700 metric tons of old crop, 1.148 million metric tons of new crop, 212,500 metric tons of old crop meal, 109,300 of new, and 6,300 of oil combined. On the November chart support is the lower Bollinger Band at $8.61 with resistance the 50-day at 8.84. WHEAT Wheat trade is narrowly mixed at midday with the higher-protein wheats leading but unable to sustain the initial gains seen, along with finding buying once scoring 10 cent lower trade this morning on the early liquidation. 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 has turned lower again this morning. Australia remains on the dry side with the crop pace ahead of normal as well with some relief for some areas. Weekly export sales slowed again to 239,800 metric tons. On the December Kansas City 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.