DTN Midday Grain Comments 08/05 11:23

DTN Midday Grain Comments 08/05 11:23 All Grains Trading Higher at Midday Soybeans and wheat are the midday leaders with corn pretty flat. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 160 points. The interest rate products are higher The dollar index is 50 points higher. Energies are lower with crude down 0.70. Livestock trade is firmer for cattle, weaker for mixed for hogs. Precious metals are lower with gold 22.90 lower. CORN Corn trade is 1 to 2 cents higher at midday with light buying spilling over from the strength in soybeans with supply concerns and the stronger dollar overhanging the market. Ethanol margins found some support from the firmer energy trade at midweek, but a broader rally will need to be sustained to provide much enthusiasm with ethanol futures holding light gains at midday. Farmer movement has been slow, but bushels will have to move to clear space ahead of harvest. On the December contract support is the contract low at $3.29 printed Tuesday. Resistance is the 10-day moving average at $3.37; then the 20-day at $3.46. 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 13 to 19 cents higher at midday with trade turning the focus back to demand so far with another 498,000 metric tons of new crop sold to China. Weather remains non-threatening, so it will likely be difficult to hold gains until the close. Meal is $4.50 to $5.50 higher and oil is flat to 10 points higher. The key factor for beans remains weather as the reproductive process moves on with forecasts non-threatening at the moment for most areas. On the November soybean chart trade moved back above the 200-day at $9.56 level again with that area generally holding as support. Resitance above there is the 10-day at $9.70, which we are above at midday. Further support is at the three-month low of $9.43 than the lower Bollinger band at $9.20. WHEAT Wheat trade is 4 to 14 cents higher across the three contracts at midday with trade finding good buying support despite the stronger dollar. Trade has failed to build on strength this week, but has also struggled to hold weakness when it approaches the lows, so today's close will be watched closely, but follow through on Monday may be more important. The spring wheat harvest should continue to progress well this week and next that may limit upside in Minneapolis. Central and Western European production estimates continue to slip, while Russian production remains robust as harvest moves along. On the Kansas City December chart support is at the $4.24 contract low. Resistance is at the 20-day moving average at $4.39 which we have edged above at midday then our one-month high at $4.58. 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.