DTN Midday Grain Comments 08/26 11:45

DTN Midday Grain Comments 08/26 11:45 Grains Moving Lower at Midday Wheat makes new contract lows with double-digit midday losses, beans follow By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow up 88 points. The interest rate products are mostly lower. The dollar index is 11 points higher. Energies are firmer with crude up 0.45. Livestock trade is mixed with cattle lower and hogs sharply higher. Precious metals are firmer with gold up $8.90. CORN Corn trade is 5 cents lower at midday with very small early strength fading and chart selling emerging. Futures are just over a nickel away from the contract lows. The dollar has firmed which is negative for grains, after the Fed Chairman indicated that they felt the environment would warrant further interest rate hikes down the road. The crop tour will wrap up, with the final yield expected to be below the USDA numbers from earlier in the month, but not wildly so. Ethanol margins have improved with ethanol futures ticking higher with the cheaper corn. Corn basis will remain on the defensive as harvest approaches but the lower board today is slowing that. On the chart, resistance is in the area in between the 10-day and 20-day moving averages at $3.35 - 3.37, then the $3.44 1/4 August high. The contract low of $3.22 1/2 is December support. SOYBEANS Soybean futures 11 to 13 cents lower at midday with early strength giving way at midday after the sharp break yesterday keeping chart pressure in control. Meal is $3 lower and bean oil is 25 points lower. The crop tour will wrap up with final tour results expected after the close to reiterate the potential for an excellent crop. Good to excellent ratings should remain steady if not go up a percentage point next week with moisture working through many areas, and a lack of excessive heat. The daily wire has been quieter in recent days, raising concerns about slower demand. On the November soybean chart support is at the $9.70 low from this morning then the 200-day at $9.64. Chart resistance is at the 10-day at $10.04 then the 100-day at $10.29. WHEAT Wheat trade has washed out to new lows with the firmer dollar and complete lack of friendly news. Futures are down as much as 15 cents. Spring wheat will continue to see harvest pressure with ample supply weighing on all classes. 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, with Russia winning the tenders today. On the KC December chart resistance is at the $4.38 20-day moving average with support the $4.21 contract made this morning. Chicago has printed a new contract low for the third day in a row, which Kansas City starting to reestablish its typical premium over the contract. 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.