DTN Midday Grain Comments 08/31 10:54

DTN Midday Grain Comments 08/31 10:54 Corn, Soybean Futures Lower at Midday; Wheat Higher Corn futures are 11 to 12 cents lower at midday Wednesday; soybean futures are 4 to 5 cents lower; wheat futures are 2 to 6 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 11 to 12 cents lower at midday Wednesday; soybean futures are 4 to 5 cents lower; wheat futures are 2 to 6 cents higher. The U.S. stock market is weaker with the DOW down 80 points. The U.S. Dollar Index is 30 lower. Interest rate products are mixed. Energies are weaker with crude down 1.30. Livestock trade is weaker. Precious metals are weaker with gold $3.00 lower. CORN: Corn futures are 11 to 12 cents lower with trade fading further from Monday's highs with the September contract heading into delivery and outside market headwinds picking up with trade working to consolidate the upper end of the range. Short-term forecasts have the center of the Corn Belt drier with warmer temps, setting the stage for early harvest expansion through Labor Day Weekend. The daily export wire will be watched for business as the extent of weekly action will remain unclear indefinitely with nothing so far this week. 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. The weekly ethanol report showed production down 17,000 barrels per day (bpd) and stocks down 274,000 barrels on the week. 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 remains below the Upper Bollinger band at $6.83 with $7.00 the next level up, with the 20-day moving average well below the market at $6.35. SOYBEANS: Soybean futures are 4 to 5 cents lower at midday with two-sided action so far as demand shows up on dips with not enough fresh bullish inputs to sustain gains so far. Meal is $2.00 to $3.00 lower, and oil is 30 to 40 points higher with crush margins remaining stable. 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 167,000 metric tons (mt) of soybeans sold to China. Basis will continue to shift toward harvest footing with trade watching to see how quickly export shipments pick up. On the November soybean chart, support is the 20-day moving average at $14.25, which we are just above at midday, with the Lower Bollinger Band at $13.80, below the market. WHEAT: Wheat futures are 2 to 6 cents higher at midday with trade shaking off row-crop weakness as it works to consolidate the recent gains as we head toward winter wheat planting for the Northern Hemisphere. Plains weather remains a bit mixed short-term with more moisture needed to boost emergence this fall, especially in Kansas, 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 mostly range-bound. Fertilizer production in Europe will continue to be watched as well with some plants offline again. The KC December chart has support at the 20-day moving average at $8.73, which we are trying to consolidate above, with the lower Bollinger Band at $8.30 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.