DTN Midday Grain Comments 08/30 10:52

DTN Midday Grain Comments 08/30 10:52 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 8 to 9 cents lower at midday Tuesday; soybean futures are 17 to 38 cents lower; wheat futures are 16 to 25 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 8 to 9 cents lower at midday Tuesday; soybean futures are 17 to 38 cents lower; wheat futures are 16 to 25 cents lower. The U.S. stock market is weaker with the DOW down 215 points. The U.S. Dollar Index is flat. Interest rate products are mixed. Energies are sharply weaker with crude up 4.60. Livestock trade is firmer. Precious metals are weaker with gold $13.00 lower. CORN: Corn futures are 8 to 9 cents lower at midday with trade pulling back from the highs, looking for demand along with profit-taking as we work toward overbought conditions and outside market headwinds. Short-term forecasts have the center of the Corn Belt drier with warmer temps, setting the stage for early harvest expansion. The daily export wire will be watched for business as the extent of weekly action will remain unclear indefinitely. The weekly USDA Crop Progress report showed good-to-excellent corn off 1% to 54% and 19% poor to very poor; 86% in the dough versus 88% on average; 46% dented versus 56% on average; 8% mature versus 9% on average. Ethanol margins will continue to see pressure from corn, firmer natural gas, and softer unleaded futures seasonally, but harvest basis will soon provide support in many areas. Basis will be watched to see how quickly we go to harvest footing, and how aggressively the west will bid for corn in the deficit areas out of the gate. On the December chart, trade is just below the Upper Bollinger band at $6.79 with $7.00 the next level up, with the 20-day moving average well below the market at $6.31. SOYBEANS: Soybean futures are 17 to 38 cents lower at midday with trade extending the recent selling as spread action continues to unwind up front, along with expectations of improvement from recent rains in the center the belt. Meal is $5.00 to $6.00 lower, and oil is 60 to 70 points lower, with crush margins following the beans more than Monday. South America is moving toward planting preparation as the export advantage will begin to shift to the U.S. over the next few weeks. Basis has been more mixed as we head toward harvest as end users ready for new crop. The daily wire showed 264,000 metric tons (mt) sold to unknown for new crop delivery. Weekly crop progress showed good to excellent at 57%, unchanged on the week, with 13% poor to very poor; 91% setting pods versus 92% on average; 4% dropping leaves versus 7% on average. On the November soybean chart, support is the 20-day moving average at $14.22, which we have edged below overnight, with the Lower Bollinger Band at $13.70, below the market. WHEAT: Wheat futures are 16 to 25 cents lower at midday with trade working to consolidate the push to the upper end of the range after failing on prior attempts with planting weather and world demand remaining in focus short-term. Plains weather remains a bit mixed short-term with more moisture needed to boost emergence this fall, while spring harvest will continue to move along. The dollar is just off the highs with interest rate outlooks remaining in focus with MATIF prices remaining mostly range-bound as well. Fertilizer production in Europe will continue to be watched. Weekly crop progress showed winter wheat harvest complete and spring wheat at 50% complete versus 71% on average; good to excellent up 4% at 68% and poor to very poor at 6% on the final condition report of the year. The KC December chart has support at the 20-day moving average at $8.70, which we are trying to consolidate above, with the lower Bollinger Band at $8.26 as further support, and the Upper Bollinger band at $9.16 as resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.