DTN Midday Grain Comments 08/23 11:00

DTN Midday Grain Comments 08/23 11:00 Corn, Soybeans, Wheat Higher at Midday Corn futures are 25 to 26 cents higher at midday Tuesday; soybean futures are 24 to 37 cents higher; wheat futures are 19 to 29 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 25 to 26 cents higher at midday Tuesday; soybean futures are 24 to 37 cents higher; wheat futures are 19 to 29 cents higher. The U.S. stock market is mixed with the DOW down 130 points. The U.S. Dollar Index is 85 points lower. Interest rate products are firmer. Energies are firmer with crude up 3.60. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold $17.00 higher. CORN: Corn futures are 25 to 26 cents higher at midday with trade gapping higher to start the session on yield concerns, broader ag support, and continued condition declines. Short-term forecasts have the center of the belt drier with milder temperatures as we head toward the homestretch with Central Corn Belt rains six to seven days out. Ethanol margins will continue to be limited by driving demand and seasonal slowdowns with unleaded futures fading again to keep blender margins flat while natural gas remains near the highs, hurting some plant 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. Weekly USDA Crop Progress showed good to excellent down 2% to 55% and 18% poor to very poor; 75% in the dough stage versus 79% on average; 31% dented versus 35% average; and 4% mature, same as average. 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, which we have pushed through overnight with the fresh high at 6.66 3/4 as the next round up. SOYBEANS: Soybean futures are 24 to 37 cents higher at midday with the September contract continuing to lead action with the product complex strong for short-term support, albeit with better rains for the center of the belt towards the weekend. Meal is $7.50 to $8.50 higher and oil is 95 to 105 points higher. South America is on post-harvest footing for shipping with their advantage to persist until September with China returning for 110,000 metric tons (mt) on the daily wire Tuesday. Weekly crop progress showed conditions 1% lower at 57% good to excellent; 13% poor to very poor; 84% setting pods versus 86% on average. Basis has been more mixed as we head toward harvest as end users ready for new crop. On the September soybean chart support is the 20-day moving average at $14.78, which we remain above, while November is back above the 20-day moving average at $14.17, with the Upper Bollinger Band at $15.56, which we are pushing above at midday. WHEAT: Wheat futures are 19 to 29 cents higher at midday with trade following strength in the row crops while the dollar is easing as we push into the recent highs as KC leads. Plains weather is more mixed for short-term moisture with deficits needing to be eased ahead of planting for Oklahoma and Texas with rains shifting further south and east while spring wheat harvest should continue to roll along with winter wheat 95% harvested versus 97% on average; spring at 33% versus 54% on average; 62% good to excellent and 8% poor to very poor, off 2%. Weekly export inspections improved at 594,273 mt. The dollar is just off the highs on interest rate outlooks turning more hawkish in recent days with recent China export business going to France. A fertilizer plant in Poland has been idled as well, once again raising nitrogen concerns for European planting. The KC September chart has resistance at the 20-day moving average at $8.61, which we are trying to consolidate above Tuesday, with the beginning of the week strength, with the fresh lows at $8.07 scored Thursday as support and the Upper Bollinger band at 9.03 3/4 as resistance, where we faltered earlier. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.