DTN Midday Grain Comments 08/18 10:56

DTN Midday Grain Comments 08/18 10:56 Corn, Beans Seeing Green; Wheat in the Red Midday Thursday Corn trade is 5 to 6 cents higher; beans are 16 to 19 cents higher and wheat is 22 to 32 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 5 to 6 cents higher; beans are 16 to 19 cents higher and wheat is 22 to 32 cents lower. The U.S. stock market is mixed with the Dow down 30 points. The U.S. Dollar Index is 0.40 higher. Interest rate products are firmer. Energies are mostly higher with crude up 2.40. Livestock trade is weaker. Precious metals are mixed with gold $2.00 lower. CORN: Corn trade is 5 to 6 cents higher at midday Thursday with buying starting to develop during the day session after early weakness as trade follows the lead of soybeans. Short-term forecasts have the center of the belt drier with milder temperatures short term. The export wire remains quiet with export sales showing improvement at 99,300 metric tons of old crop and 750,000 of new crop. Ethanol margins will continue to be limited by driving demand and seasonal slowdowns with unleaded futures finding support in recent days to keep blender margins flat while natural gas remains near the highs, hurting some plants margins. 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 at $6.08 and the upper Bollinger Band is the next round up at $6.41. SOYBEANS: Soybean trade is 16 to 19 cents higher at midday with spreads flattening out as broad buying returns during the day session with meal leading the product side to support crush margins. Meal is $9.00 to $10.00 higher and oil is 1.05 cents to 1.25 cents 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 with nothing on the daily wire Thursday, while the bulk of the U.S. is heading into the start of podfill season with less stressful weather this week temperature wise, with follow-up moisture limited for most of the west. Basis has been more mixed as we head towards harvest. Weekly export sales showed some strength as well with 96,900 metric tons of old crop, 1.3 million of new, with 66,600 of old meal, 296,700 of new, and 1,600 of oil. On the September soybean chart, support is the 20-day at $14.53, which we are well above while November has edged back above the 20-day at $14.04, with the upper Bollinger Band at $15.58, which we have faded from as resistance. WHEAT: Wheat trade is 22 to 32 cents lower at midday with early gains giving way to fresh lows being scored as selling picks up in low volume, with fresh bullish news lacking and liquidation after trade failed to extend gains Wednesday, along with wheat being the short leg of spreads and hints of possible broader progress in Black Sea geopolitics. Weather in the Plains looks for better short-term moisture with deficits needing to be eased ahead of planting for Oklahoma and Texas, while spring wheat harvest should expand significantly this week. The dollar is rebounding a bit with mixed inflation ideas along short term with Egypt making some purchases without tenders while MATIF values fade further in low volume. Weekly export sales were softer at 207,200 metric tons. The KC September chart has resistance at the 20-day at $8.63, which we broke below Thursday morning, with the fresh lows at $8.07 scored Thursday morning as support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.