DTN Midday Grain Comments 08/10 11:15

DTN Midday Grain Comments 08/10 11:15 Corn, Wheat Higher at Midday Corn and wheat are higher at midday, while soybeans drift lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 40 points. The interest rate products are lower. The dollar index is 47 points lower. Energies are lower with crude down 0.80. Livestock trade is mixed. Precious metals are firmer with gold 5.90 higher. CORN Corn trade is 1 to 3 cents higher at midday with light buying during the day session with support from export sales of 143,650 metric tons to Mexico and the weaker dollar. 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 this weekend. Basis is expected to remain neutral to soft with good near term usage, but bushels moving out of storage. Weekly ethanol production was 1.39% higher, stocks were 0.69% lower, and gasoline demand was 0.17% higher. Looking ahead to the report, the average yield guess is 170.6, with a 168-175 range, with carryout 2.25 billion bushels with a range of 1.968 to 2.55 billion. Old crop is 1.716 billion with a range of 1.68 to 1.83. On the December contract support is the contract low at $3.29 printed last week. Resistance is the 10-day moving average at $3.35; then the 20-day at $3.42. SOYBEAN Soybean trade is 4 to 8 cents lower at midday with a pause in export announcements, and wetter weather encouraging some light selling. Meal is $4 to $5 lower and oil is 40 to 50 points higher. Soybeans are in the heart of their weather market, which could lead the market to shift directions suddenly Palm oil stocks continue to tighten in SE Asia supporting crush margins. Looking ahead to Friday, the average yield estimate is 47.5 BPA, with 46.7 to 48.5 the range, with new crop carryout at 316 million bushels on a range of 280 to 416, and old crop at 320 million on a 254 to 355 range. 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 $9.95 first notable resistance, then the 100-day at $10.17. WHEAT Wheat trade is 2 to 7 cents higher across the three contracts at midday with support from the weaker dollar and wheat/soybean spread unwinding. The dollar is softer this morning which could add more support during the day session if sustained, but it has firmed off the lows. The spring wheat harvest should continue to progress well this week and next that may limit upside in Minneapolis. The USDA monthly report on Friday morning is expected to show carryout at 1.14 billion bushels, with a 1.082 to 1.210 range. On the KC December chart support is at the $4.24 contract low. Resistance is at the 20-day moving average at $4.38, 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.