DTN Midday Grain Comments 08/04 11:24

DTN Midday Grain Comments 08/04 11:24 Grains Mixed at Midday We are seeing light gains at midday with a recovery from our pressure this week. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 36 points. The interest rate products are lower. The dollar index is 82 higher. Energies are higher with crude up 35 cents and ethanol up 2 cents. Livestock trade is mixed with cattle lower and hogs higher. Precious metals are lower with gold down $13. CORN Corn trade is 2 cents higher at midday in slow trade; our range has been around a penny lower to 4 cents higher. December corn is currently a dime lower on the week and a nickel above the weekly low. We are 37 cents off our summer high and 6 from our summer low. So the market has taken the weather premium based upon forecasts and crop ratings remaining above 60% good to excellent. Most of the trade look for corn to consolidate in this area near the summer lows ahead of the monthly USDA World Agricultural Supply and Demand Estimates due out next Thursday August 10. On the December chart support is at the fresh monthly low printed Thursday at $3.75 with resistance at the 10-day moving average at $3.83. SOYBEANS Soybean trade is mixed at midday following some early strength; meal is $1 lower and soybean oil is up 20 points. Friday's are tricky in the summer; usually a weak week can lead to a bounce adding weather premium to the trade. But for today there is some negative chart energy around too. Seasonally beans can look better in early August when a field did not look that great two weeks ago. This was seen with the 2 percentage-point jump in crop ratings Monday, and the trade is mixed at this juncture in regard to this Monday but a 1-2 percentage point increase is what market bears are talking about. Market bulls are arguing we need to see more rain in the forecasts. The dollar strength today is limiting upside. The low Thursday was more than 90 cents below the July and yearly high and we closed below all major moving averages. The 100-day moving average at $9.66 1/2 is the lowest major moving average and chart resistance. A second-day close below all major moving averages can typically bring in more chart selling. There is limited support below $9.55; the Thursday low and one-month low. WHEAT Wheat trade is mixed at midday with Minneapolis up around a nickel and the winter wheat contracts down a penny. The big strength in the dollar is noted for the lower winter wheat trade as well as the weekly export sales being at a marketing year low yesterday morning. Spring wheat harvest results remain variable and include some low yields providing strength to Minneapolis futures. On the December Kansas City contract support is the lower bolliger band at $4.63 with resistance at 200-day and lowest major moving average at $4.93 1/2. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.