DTN Midday Grain Comments 08/25 11:25

DTN Midday Grain Comments 08/25 11:25 Grains Lower at Midday Soybean futures lead trade lower at midday with most contracts near the daily lows. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are higher with the Dow up 8 points. Interest rate products are higher. The dollar index is 4 points lower. Energies are firmer with crude up .30. Livestock trade is lower. Precious metals are mixed with gold down $3.30. CORN Corn futures are 2 cents lower at midday and near the daily low which is a fresh 1-week low. Overnight trade was two-sided, but weakness in the beans has spilled over to corn. The Pro Farmer Midwest Crop Tour will continue in the center of the Corn Belt Thursday as they get closer to wrapping up. Ethanol margins are fairly stable with corn tracking lower with energies this week. Corn basis will remain on the defensive as harvest approaches with record supplies combining the 1.7 billion carryover and over 15 billion bushel crop. The weekly export sales were good and in the upper half of expectations at 1.13 million metric tons, combined old and new crop. We need demand to stay strong, i.e. weekly sales totals over one million tons are needed to keep the market supported. On the charts, resistance is in the area in between the 10-day and 20-day moving averages at $3.36 1/2 - 3.38, then the $3.44 1/4 August high. The contract low of $3.22 1/2 is support. A lower close Thursday could likely trigger long liquidation and fresh technical selling due to two daily closes below all major moving averages. SOYBEANS Soybean futures are 20 to 25 cents lower at midday with chart selling picking up after we fell below the 20-day moving average. Meal is $5 to $6 lower and bean oil is 60 to 70 points lower. The crop tour is expected to find good pod counts through the balance of today as it works through the better areas of the corn/soybean belt. The weather forecast remains neutral to slightly bearish with some warmth returning, and good rain expected for many areas. Good-to-excellent ratings should remain stead,y if not go up a percentage point next week. South American cash movement has picked up a bit with the Argentina export tax cut delayed. The weekly export sales were good at 2.05 million metric tons of soybeans combined old and new crop, 64,400 of old-crop meal, 149,900 of new-crop meal, and 3,700 of oil. The lower market following the good sales numbers was disappointing. On the November soybean chart support is at the $9.80 low seen last Monday then the 200-day at $9.64. Chart resistance is at the 10-day at $10.05 then the 100-day at $10.29. WHEAT Wheat futures are steady to 3 cents lower at midday with weak row-crop trade dragging values down after some early strength. Spring wheat will continue to see harvest pressure with ample supplies weighing on all classes. The dollar has trended lower this morning, which will be needed as further support. Canadian harvest will be hitting full stride soon, and Egypt is expected to tender for imports again soon with some changes in the government buying agency. The weekly export sales were soft at 379,900 metric tons. On the KC December chart resistance is at the $4.38 20-day moving average with support the $4.24 contract low. Chicago has printed a new contract low for the second day in a row. 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.