DTN Midday Grain Comments 08/19 10:50

DTN Midday Grain Comments 08/19 10:50 Corn, Wheat Futures Higher at Midday; Soybeans Lower Corn futures are 5 to 6 cents higher at midday Friday; soybean futures are 8 to 11 cents lower; wheat futures are 15 to 22 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 6 cents higher at midday Friday; soybean futures are 8 to 11 cents lower; wheat futures are 15 to 22 cents higher. The U.S. stock market is weaker with the DOW down 280 points. The U.S. Dollar Index is 70 points higher. Interest rate products are weaker. Energies are mostly higher with crude up 2.40. Livestock trade is mostly lower. Precious metals are mixed with gold $10.00 lower. CORN: Corn futures are 5 to 6 cents higher at midday with light, two-sided trade so far. Little fresh news and negative spillover from soybeans and energies easing into the day session help spark a bit of buying. Short-term forecasts have the center of the belt drier with milder temperatures. 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 moving average at $6.08 and the upper Bollinger Band is the next round up at $6.38. SOYBEANS: Soybean futures are 8 to 11 cents lower with trade fading back from the midweek bounce with flat spread action as crush margins slip on product weakness and weather remains less threatening nearby with trade finding support during the day session. Meal is $5.00 to $6.00 lower and oil is 110 to 120 points higher. Biodiesel margins remain positive but narrowing in recent days with overall crush margins still OK even with the pullback. South America is on post-harvest footing for shipping with their advantage to persist until September with nothing on the daily wire so far this week for the U.S., while the bulk of the U.S. is heading into the start of pod-fill 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 toward harvest with a quiet export wire. On the September soybean chart, support is the 20-day moving average at $14.62, which we remain above, while November has edged back below the 20-day at $14.08, with the Upper Bollinger Band at $15.51, which we have faded from as resistance. WHEAT: Wheat futures are 15 to 22 cents higher with KC action leading after the washout of the last two sessions as trade works to consolidate near the fresh lows scored Thursday while waiting for further news on Black Sea developments and spread action versus the row crops. Plains weather looks for better short-term moisture with deficits needing to be eased ahead of planting for Oklahoma and Texas, while spring wheat harvest should continue to roll along. The dollar is back to the highs on interest rate outlooks turning more hawkish this week, which will likely limit export interest. The KC September chart has resistance at the 20-day moving average of $8.59, which we broke below Wednesday, with the fresh lows at $8.07 scored Thursday as support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.