DTN Midday Grain Comments 08/03 11:28

DTN Midday Grain Comments 08/03 11:28 Grains Trending Higher at Midday Wheat is the leader at midday with some double-digit midday gains, row crop trade is now flat to firmer. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 25 points. The interest rate products are mostly higher. The dollar index is 40 points higher. Energies are firmer with crude up 0.80. Livestock trade is mostly higher. Precious metals are lower with gold 8.90 lower. CORN Corn trade is 1 to 2 cents higher at midday due to spillover support from wheat and light short profit taking. The weekly ethanol production report showed production 0.6 percentage points higher, with stocks 1.0 percentage point higher, and gasoline demand 0.46 percentage points lower. This was not positive for ethanol, but ethanol is a penny higher at midday due to spillover support from crude and rbob. Basis has been fairly flat this week with trade waiting for remaining old crop bushels to be pushed into the market ahead of our expected record harvest and record total supplies for the beginning of the 2016-17 crop year. The USDA announced 290,000 metric tons of corn sold to unknown this morning. On the December contract support is the contract low at $3.29 printed Tuesday. Resistance is the 10-day moving average at $3.39; then the 20-day at $3.48. The nearby September contract low, printed Tuesday, at $3.19 1/2 came very close to the $3.18 multi-year nearby low seen two years ago. SOYBEANS Soybean trade is flat to 3 cents higher at midday with trade surrending early strength. Meal is $1 to $2 lower and oil is 40 to 50 points higher. The forecast is viewed as nonthreatening which has limited buying in higher territory. The daily export wire has been active lately with 6 days of announcements in a row with 256,000 metric tons sold to China, and 441,000 to unknown. U.S. origin is expected to remain the cheapest for awhile which should continue to support export business as we move toward our new crop year. On the November soybean chart trade is back above the 200-day at $9.56, which will become support again if trade holds above it all day, with the lower Bolliger band at $9.31 below that. WHEAT Wheat trade is 5 to 13 cents higher across the three contracts at midday with buying surfacing as European wheat values continue to advance. Spring wheat harvest should continue to progress in the near term with full swing still a week or so off. European harvest will keep moving along with estimates for French production continuing to decline. Lower acres for next year will also be on the trade's mind with planting season for winter wheat not far off. On the Kansas City December chart support is at the $4.24 contract low. Resistance is at the 10-day and 20-day moving averages around $4.38-40 which we are above at midday, then the 50-day at 4.73. 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 2016 DTN/The Progressive Farmer. All rights reserved.