DTN Midday Grain Comments 08/24 10:56

DTN Midday Grain Comments 08/24 10:56 Corn Futures Lower at Midday; Soybeans, Wheat Mixed Corn futures are 1 to 3 cents lower at midday Wednesday; soybean futures are narrowly mixed; wheat futures are 3 cents lower to 6 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 3 cents lower at midday Wednesday; soybean futures are narrowly mixed; wheat futures are 3 cents lower to 6 cents higher. The U.S. stock market is firmer with the DOW up 130 points. The U.S. Dollar Index is 10 points lower. Interest rate products are weaker. Energies are mixed with crude down .50. Livestock trade is weaker with hogs the downside leader. Precious metals are mixed with gold $5.00 higher. CORN: Corn futures are 1 to 3 cents lower at midday with early gains fading as trade fails to extend from the top end of the range on early strength from crop tour findings and broader ag interest, setting up some long liquidation at midday. Short-term forecasts have the center of the belt drier with milder temperatures as we head toward the homestretch with central belt rains four to five days out. Ethanol margins will continue to see pressure from firmer corn, firmer natural gas, and softer unleaded futures. The weekly ethanol report showed production 4,000 barrels per day (bpd) higher, and stocks were 361,000 barrels higher with driving demand remaining soft. 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 with a greater expansion likely soon. On the September chart, trade is at the Upper Bollinger band at $6.59, with the 20-day moving average well below the market at $6.20. SOYBEANS: Soybean trade is narrowly mixed at midday with September continuing to lead toward delivery while meal leads the product complex as we wait for more crop tour data and potential short-term rains in the drier areas to finish. Meal is $1.50 to $2.50 higher and oil is 45 to 55 points lower. The crop tour will include soybean pod counts with some areas likely to be better today. South America is on post-harvest footing for shipping with their advantage to persist until September. China returned for 517,000 metric tons (mt) on the daily wire Wednesday, indicating business got done on the last break. 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 $14.88, which we remain above, while November is back above the 20-day moving average at $14.21, with the Upper Bollinger Band at $15.80, which we are just below at midday. WHEAT: Wheat futures are 3 cents lower to 6 cents higher at midday with KC action leading again as trade presses into the resistance levels before fading again as world export patterns and Northern Hemisphere planting prospects grow in importance. 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. 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 as MATIF futures fade a bit today. The KC September chart has support at the 20-day moving average at $8.64, which we are trying to consolidate above Wednesday with the beginning of the week strength, with the fresh lows at $8.07 scored last Thursday as support and the Upper Bollinger band at 9.07 3/4 as resistance, which we have faded back from after testing overnight. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.