DTN Midday Grain Comments 08/27 11:27

DTN Midday Grain Comments 08/27 11:27 Grains Trending Lower at Midday Trade is lower at midday, but off the overnight lows. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 220. The interest rate products are firmer. The dollar index is 33 lower. Energies are narrowly mixed with crude narrowly mixed. Livestock trade is sharply higher. Precious metals are firmer with gold up $5.00. CORN Corn trade is flat to 1 cent lower at midday with trade grinding along the lower end of the range, with trade solidly off the lows. Warmer weather over the weekend should help to move the crop along, and the trade deal with Mexico was announced. Ethanol futures continue to track lower touching with nearby contracts dropping around $1.30. This is keeping blender margins pretty stout, but not great for producers. Corn basis will likely continue to fade even with board weakness with more harvest activity building into this week. The crop tour has shown strong yields as expected as it wraps up with the final guess at 177.3 BPA. The weekly crop progress should keep maturity ahead of normal with conditions steady. The weekly export inspections remained solid at 1.245 million metric tons. On the December chart futures have support at the recent low at $3.57 1/2 scored this morning, then the $3.50 1/4 contract low printed in July. Resistance is at the 10-day at $3.71. SOYBEANS Soybean trade is 3 to 5 cents lower with trade bouncing back a dime off the overnight lows, ahead of the trade aid package for farmers expected to be announced at noon central time. Meal is 4.00 to 5.00 lower and oil is 20 to 30 points higher. Basis is expected to see more pressure, especially along areas that feed the PNW. Pod counts have been very strong on the tour with final estimates at 53.0 BPA. The weekly crop progress is expected to show maturity still ahead of normal, with conditions steady. The weekly export inspections were good at 901,620 metric tons. On the November chart, support is the low at $8.39, with the lower Bollinger Band above that at $8.45, and resistance the 10-day at 8.74. WHEAT Wheat trade selling continues at midday, with trade 6 to 11 cents lower with trade still struggling to find support. Spring wheat harvest should continue to move along at a good clip with varied yields so far and heading quickly for the home stretch with over 3/4 likely complete at this point. The U.S. dollar continues to work lower. Matif wheat was lower again to start the week. Russian domestic values are still rising which will be a pressure point for exports. Australia remains on the dry side with the crop pace ahead of normal as some showers move through in the near term. Weekly crop progress will likely show limited harvest left, with planting yet to start for winter wheat. The weekly export inspections showed some improvement at 488,187 metric tons. On the December Kansas City chart, we have support at the lower Bollinger Band at $5.36, with resistance the 50-day at 5.46. 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.