DTN Midday Grain Comments 08/17 10:56

DTN Midday Grain Comments 08/17 10:56 Soybean Futures Higher at Midday; Corn Mixed; Wheat Lower Corn futures are narrowly mixed at midday Wednesday; soybean futures are 4 to 13 cents higher; wheat futures are 15 to 23 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are narrowly mixed at midday Wednesday; soybean futures are 4 to 13 cents higher; wheat futures are 15 to 23 cents lower. The U.S. stock market is weaker with the DOW down 235 points. The U.S. Dollar Index is 30 points higher. Interest rate products are weaker. Energies are mostly higher with crude up .50. Livestock trade is firmer with cattle leading. Precious metals are weaker with gold $13.50 lower. CORN: Corn futures are narrowly mixed with firmer spread action with trade working to consolidate in the middle of the range after the early week sell-off and early gains fading. Short-term forecasts have the center of the Corn Belt drier with milder temperatures short term. Ethanol margins will continue to be limited by driving demand and seasonal slowdowns with unleaded futures finding support in recent days. The weekly ethanol report showed production down by 39,000 barrels per day (bpd), with stocks rising by 190,000 barrels. Basis will be watched to see how much further strength fades, especially with the board rally and harvest starts in the South with mixed to lower yields and aflatoxin concerns so far. On the September chart, support is the 20-day moving average at $6.06 and the upper Bollinger Band is the next round up at $6.42. SOYBEANS: Soybean futures are 4 to 13 cents higher at midday with firmer spread trade as drier weather returns short term for much of the belt, with trade working to consolidate at nearby support levels with early gains fading a bit. Meal is flat to $1.00 higher, and oil is 40 to 50 points lower. Biodiesel margins remain positive but narrowing in recent days with overall crush margins good. South America is on post-harvest footing for shipping with their advantage to persist until September. The bulk of the U.S. is heading into the start of pod-fill season with less-stressful weather this week, temperature-wise. Basis has been more mixed as we head toward harvest. On the September soybean chart support is the 20-day moving average at $14.45, which we are well above, while November has faded through the 20-day moving average at $14.00, with the Upper Bollinger Band at $15.65, which we have faded from. WHEAT: Wheat futures are 15 to 23 cents lower at midday with KC turning from leading trade higher overnight to leading lower with better rains expected and near-term demand questions remaining as Black Sea shipping moves forward. Plains weather looks for better short-term moisture with deficits needing to be eased ahead of planting, while spring wheat harvest should expand significantly this week. The dollar is rebounding a bit with mixed inflation ideas. Egypt is making some purchases without tenders while MATIF values fade further in low volume. The KC September chart has support at the 20-day moving average at $8.63, which we broke below this morning, with the Lower Bollinger band at $8.23 the next round down. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.