DTN Midday Grain Comments 08/16 11:14

DTN Midday Grain Comments 08/16 11:14 Grains Mixed at Midday Trade is mixed at midday with two sided action seen so far. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 40 points. The interest rate products are higher. The dollar index is 75 points lower. Energies are higher with crude up $0.70. Livestock trade is lower. Precious metals are firmer with gold up $6.60. CORN Corn trade is narrowly mixed at midday with light two-sided action so far. Ethanol margins have been boosted by the recent rally in energies. Cooler weather later this week should slow the pace of maturity with ample moisture most places. Crop conditions remained at 74% good to excellent, but 1% moved from good to excellent. Crop progress noted 21% of the crop dented, in line with the 5-year average but 73% was listed in the dough stage versus the 60% average. December chart support is the 10-day at $3.33, with the $3.22 1/2 fresh contract low printed Friday. Resistance is at the 20-day at $3.37 which we are testing at midday. The next major moving average to the upside is not until the 50-day at $3.72 so the next area of resistance we would point to above the 20-day is the late July high at $3.46. SOYBEANS Soybean trade is 2 to 5 cents higher at midday with trade seeing a 15 cent range again with better weather battling with ample demand, with more Chinese purchases announced this morning with 119,000 metric tons sold for new crop. Meal is mixed, and oil is 20 to 30 points higher. Rains are expected to continue this week in much of the belt, which could raise some issues with localized flooding, but it will boost some of the drier areas. The weekly conditions were unchanged as expected at 72% good to excellent. Progress noted 80% setting pods versus the 75% average. On the November soybean chart, trade moved above the 20-day yesterday at $9.83. We are also back over $10.00 which becomes nearby support with the 20-day below that. The 100-day at $10.22 is nearby resistance then the 50-day at $10.56. WHEAT Wheat trade is narrowly mixed in quiet trade at midday, with the weaker dollar helping trade to firm off the overnight lows. Russian harvest should continue to move along this week, Spring wheat harvest in the US will keep moving along with Canadian harvest pressure just around the corner. The Minneapolis contract has went to an inverse on the nearby months this morning adding support. The weekly spring wheat conditions were down 2 percentage points at 66% good to excellent. Spring wheat harvest progress was listed at 48% versus the 30% average which good progress expected again this week. On the Kansas City December chart, support is at the $4.24 contract low. Resistance is at the $4.46 August high, made this morning, with trade setting around the 10- and 20-day moving averages at $4.37-38, which we are just below. 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.