DTN Midday Grain Comments 08/31 11:14

DTN Midday Grain Comments 08/31 11:14 Grains Mixed at Midday Early strength gives way to mixed trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 65 points. The interest rate products are mostly higher. The dollar index is 6 points higher. Energies are weaker with crude down 1.40. Livestock trade is mostly lower. Precious metals are mixed with gold down $6.20. CORN Corn trade is flat to 1 cents higher at in quiet trade with a nickel range so far, as early buying gave up mid-morning. Ethanol margins are softer this morning with futures turning lower after weekly ethanol production came in 0.49% lower, with stocks .52% higher, and gasoline demand .21% lower. Corn basis will remain on the defensive as harvest approaches with the last on farm bushels moving to town. The crop is expected to continue to advance with warmer temperatures as silage cutting moves through the belt and limited wet corn harvest gets started in some areas. The USDA announced 275,000 metric tons of corn sold to Mexico. On the chart, trade has support at the $3.14 3/4 low, with resistance at the 10-day of $3.31 if the trade can find buying support, as the trend remains down with successive new lows being put in. SOYBEANS Soybean futures are 4 to 8 cents lower at midday this morning with trade testing the low end of the recent range. Meal is $1 to $2 lower and oil is 30 to 40 points lower. Trade will be looking for more export announcesmens with the Chinese trade delegation visiting this week, as 187,000 metric tons of beans were announced as sold to China on the daily wire. Early planting in Brazil is now about two weeks away which will start attracting more attention soon. Wetter weather in much of the belt should help the crop to finish out. On the November soybean chart support was at the $9.60 low from Friday with the 200-day at $9.66 above that; longer term support is the $9.30 area from April, with the $9.43 area of August support above that. WHEAT Wheat trade is mixed at midday as early short covering gave way to selling during the day session. Canadian harvest will be hitting full stride soon, and Russia looks to continue an aggressive export pace with ongoing issues in Egypt causing problems, although Egypt has returned with another tender overnight. Tunisa also secured some wheat and barely from the Black Sea this morning. The USDA also announced a sale of hard red wheat to unknown of 125,000 metric tons. U.S. spring wheat harvest should be nearing the end with spring wheat trade finding more support early in the week. On the Kansas City December chart support is now the $3.95 low from yesterday, with trade well below the nearby moving averages. Chicago has printed a new contract low for the fifth day in a row, which Kansas City holding back above Chicago values. 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.