DTN Midday Grain Comments 08/23 10:47

DTN Midday Grain Comments 08/23 10:47 Corn Lower; Soybeans, Wheat Higher at Midday Corn is 1 to 2 cents lower, soybeans are 6 to 8 cents higher and wheat is 2 to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow up 270. The dollar index is 40 lower. Interest rate products are mixed. Energies are firmer with crude up 3.30. Livestock trade is firmer with cattle leading. Precious metals are firmer with gold up 20. CORN: Corn trade is 1 to 2 cents lower with two-sided trade so far as we try to build support and establish a new range after the end-of-week pressure last week. Ethanol margins should remain in the recent range with the energy rebound to start the week, but the cheaper fall blends will limit upside even as harvest basis approaches. Brazil will continue to move along with the end of the second-crop season with harvest wrapping up and next year's planting underway. The weekly Crop Progress report is expected to show conditions steady with maturity slightly ahead of average. Weekly export inspections continue to soften at 724,784 metric tons. Corn basis will likely continue to drift lower as we get closer to widespread harvest. On the September contract, we are right below the lower Bollinger band at $5.39 with the recent low at $5.31 as further support. SOYBEANS: Soybeans are 6 to 8 cents higher at midday with oil leading the rebound as renewable fuels guidance remains mixed with lower levels expected for 2021 and higher levels for 2022. Meal is $5 to $6 lower, and oil is 155 to 175 points higher. The weather pattern looks wetter for the central and eastern belt after mixed weekend action to close out pod fill with warm weather continuing. South America has lost its price advantage to the U.S. into fall, while product values need meal to emerge as a leader to drive crush values. Basis levels have been flat to weaker in recent days. The weekly Crop Progress report is likely to show steady conditions and above-average maturity, with inspections at 214,061 metric tons. On the September soybean chart, resistance is at the lower Bollinger band at $13.08, and the support the fresh low at $12.78. WHEAT: Wheat trade is 2 to 8 cents higher with Chicago wheat leading at midday with support from the weaker dollar and trade finding buying as support levels got tested. The dollar remains elevated as it backs off fresh highs, though, limiting upside if it stabilizes, holding 93 on the index so far. The U.S. has pushed above world values, continuing to limit near-term export business. KC holds at a 14-cent discount to Chicago, widening a bit, with Minneapolis at a 198-cent premium, widening to start the week. Spring wheat harvest should be near completion with export inspections strong at 657,854 metric tons. KC September on the chart has support at the 20-day at 7.03 with resistance the fresh high at $7.55. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.