DTN Midday Grain Comments 08/19 11:28

DTN Midday Grain Comments 08/19 11:28 Soybeans Lower at Midday Trade is slow and mixed at midday with soybeans lower, corn and wheat lightly higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow down 25. The interest rate products are higher. The dollar index is 40 points higher. Energies are mixed with 0.12. Livestock trade is mixed. Precious metals are mixed with gold down $8. CORN Corn trade is 1 to 2 cents higher at midday to keep in tact the higher momentum for the week. Ethanol margins have been supported by the recent rally in the energy complex, and producer margins remain strong with ethanol futures edging slightly higher. Basis will remain defensive as harvest approaches with storage likely at a premium this fall, plus the higher board has helped gain some old crop bushels. Most expect the slow trde to continue into the afternoon. The December range has only been 4 cents and we are a penny off the high at midday. December chart support is the 20-day at $3.36 1/2 then the $3.22 1/2 contract low. Resistance is at $3.42, which we haved edged through this morning then $3.46 followed by the 50-day at $3.67. SOYBEANS Soybean futures set back again today yet we continue to find support around the $10 level on November. Soybean futures are trading 6 to 9 cents lower here at midday with weaker palm oil trade pressuring bean oil which is off 20 points. Meal is seeing light pressure as well sitting $3 lower. Weather continues to look like a non-issue in the near term with greater rains slated for the western belt this week. The USDA announced 261,000 metric tons of soybeans sold to unknown for new crop this morning. On the November soybean chart, trade has support at $10 with the 10-day at $9.96 below that. The 100-day at $10.22 is nearby resistance then the 50-day at $10.56. WHEAT Wheat trade is 1 to 4 cents higher at midday in slow action across the three markets. The firmer dollar will work against trade but it has migrated back to the lower end of the summer range. The higher protein wheat is finding strong demand amidst a low protein harvest year, especially with France having to import milling wheat. This should help Minneapolis futures see support but winter wheat contracts may struggle, with an increased reliance on feed demand to clear out lower quality wheat. On the Kansas City December chart support is at the $4.38 level where the 10-day and 20-day moving averages then the $4.24 contract low. Resistance is at the $4.49 3/4 August high then the $4.53 50-day. 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.