DTN Midday Grain Comments 08/21 11:06

DTN Midday Grain Comments 08/21 11:06 All Grains Lower at Midday Trade is lower across the board at midday with a lot of commodity pressure at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow futures down 285 points. The interest rate products are mostly lower. The dollar index is 85 lower. Energies are lower with crude down 1.10. Livestock trade is sharply lower with some feeder contracts the $4.50 limit lower. Precious metals are mixed. CORN Corn trade is 3 to 5 cents lower at midday with spillover pressure from beans appearing to drag corn lower after some initial support. The market continues to talk about the Pro Farmer crop tour which will put out yield projections today expected to come out in the 164-166 range after good but not spectacular numbers out of Iowa and Minnesota. Ethanol margins will remain under pressure with the end of summer driving season coming soon, and crude oil down near $40 with concerns over forward demand. Ethanol futures have been flat this week but are lower this morning. On the December chart support is at the recent contract low of $3.57 1/2 with trade at midday back below the 10-day and 20-day moving averages in the $3.80 area which is not resistance. SOYBEANS Soybean trade is 12 to 16 cents lower at midday with limited weather concerns but concerns about forward Chinese demand. Meal is $2 to $3 lower, and oil is 70 to 80 points lower. Concerns about the Chinese economy will likely continue to keep trade defensive on further outside weakness along with big supply availability with the U.S. harvest nearing. Crop tours this week will also give more insight into the crop size with variable results so far, although yields are hard to extrapolate from pod count, with very good numbers from Iowa and Minnesota. November chart support is now the new contract low at $8.88 with resistance at $9.09, the three-day high, then the 10-day moving average at $9.23. Expect sell stops below the low; momentum at midday is flat to down. WHEAT Wheat trade is 6 to 10 cents lower across the three contracts at midday following the lead of the row crops. The dollar continues to leak lower which should help improve U.S. export competitiveness. The rest of the Northern Hemisphere harvest should continue in the near term with estimated production expected to edge a bit lower. Futures are oversold but momentum remains down. Chart resistance for the September Kansas City contract is at $4.82 the 10-day moving average. Support is at the $4.69 contract low reached last Wednesday which we are near at midday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.