DTN Midday Grain Comments 08/09 11:04

DTN Midday Grain Comments 08/09 11:04 Grains Mixed at Midday Soybeans lead at midday while corn and wheat struggle. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 45 points. The interest rate products are lower. The dollar index is 25 points lower. Energies are mixed with crude flat. Livestock trade is higher for cattle, and mixed for hogs. Precious metals are mixed with gold 5.30 higher. CORN Corn trade is flat to 2 cents lower at midday with trade continuing to chop around in the recent range. Weather looks to be generally good for crop development in the near term but slightly dryer and hotter than what would be viewed as ideal, with the forecasts improved for the Eastern Belt in the near term. Ethanol futures have edged lower this morning, with margins narrowing a bit. Two-sided trade should be the rule until the report with short covering, and production estimates moving lower again in Brazil. Yield guesses are in the 169-175 BPA range, with carryout projections moving into the 2.0 to 2.3 billion bushel range are expected on the report. The weekly crop progress/condition numbers were a light surprise with good to excellent down 2% to 74%, and poor to very poor up 1 percentage point at 7% with fair up 1 percentage point at 19%. Crop progress listed 53% in the dough stage versus the 42% average, but only 9% dented versus the 12% average. On the December contract support is the contract low at $3.29 printed last week. Resistance is the 10-day moving average at $3.37; then the 20-day at $3.45. SOYBEANS Soybean trade is 8 to 14 cents higher at midday with trade firming sharply off the early lower trade. Meal is $4 to $5 higher and oil is 40 to 50 points higher. Soybeans are in the heart of their weather market, keeping all eyes on the midday forecast updates with the east looking wetter in the extended forecast. Trade got the 10th-consecutive export announcement with 120,000 etric tons sold to unknown. The weekly condition numbers remained at 72% good to excellent with 1 percentage points moving from good to excellent. The progress remains ahead of normal with 69% setting pods versus the 61% average pace. Looking ahead to Friday yield estimates are 46.7 to 49 BPA, with carryover expectations steady to 50 million higher with demand looking to make up for the expected higher production. On the November soybean chart the 10-day moving average at $9.73 is support, then the 200-day at $9.57, with the 20-day at $10.00 first notable resistance then the 100-day at $10.17. WHEAT Wheat trade is 1 to 5 cents lower at midday with trade continuing to grind along as it struggles to post any sort of breakout in either direction. The dollar is softer as are European prices this morning, muting the effect of both. The spring wheat harvest should continue to progress well this week and next that may limit upside in Minneapolis. The progress numbers listed the winter wheat harvest at 94% complete versus the 91% average and spring wheat is 30% harvested versus the 18% average. The spring wheat ratings were unchanged at 68% good to excelent. The USDA monthly report on Friday morning is expected to confirm large world supplies, and domestic carryouts over 1.0 billion bushels. 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, 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.