DTN Midday Grain Comments 08/29 11:03

DTN Midday Grain Comments 08/29 11:03 Grains Trending Higher at Midday Wheat leads higher trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 95. The interest rate products are firmer. The dollar index is 8 lower. Energies are firmer with crude up 0.77. Livestock trade is mixed. Precious metals are lower with gold down 5.00. CORN Corn trade is flat to 1 cent higher at midday with support from wheat and soybeans but limited buying enthusiasm. Early harvest should continue to expand this week as we get closer to the December contract becoming the front month on Friday. Ethanol production was down 3,000 barrels per day, with stocks down 200,000 barrels last week, while ethanol futures have broken below $1.30 this morning pressuring producer margins. Corn basis has held up pretty well in recent days. On the December chart futures have support at the recent low at $3.55 1/4 scored this morning, then the $3.50 1/4 contract low printed in July. Resistance is at the 10-day at $3.67. SOYBEANS Soybean trade is 4 to 6 cents higher with oversold conditions battling with continued basis erosion in front of harvest along with demand concerns. Meal is $1.50 to $2.50 higher and oil is flat to 10 points lower. Basis is expected to see more pressure, especially along areas that feed the PNW with the Ohio River valley widening quickly. Heavy rains could be an issue in some areas in the near term especially in the northern part of the belt. On the November chart support is the low at $8.32, with the summer lows at $8.31 below that, and resistance the 10-day at 8.66. WHEAT Wheat trade is 10 to 22 cents higher at midday with trade trying to firm off the fresh lows scored yesterday with focus returning to Russian export capacity coming forward along with frost issues in Australia. Spring wheat harvest should continue to move along at a good clip with varied yields so far and heading quickly for the home stretch for the year. The U.S. dollar is holding in the lower end of the recent range. Matif wheat is firmer this morning as well. Russian domestic values are still rising, which will be a pressure point for exports with renewed talk of a 25-million-metric-ton cap. Australia remains on the dry side with the crop pace ahead of normal as some showers move through in the near term with broad forecast disagreement. On the December Kansas City chart we have support at the fresh low of $5.26 with the 50-day at $5.46 first resistance which we are just above at midday, with the 10-day at $5.57 above that. 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.