DTN Midday Grain Comments 08/17 11:49

DTN Midday Grain Comments 08/17 11:49 Grains Mixed at Midday Trade is mixed at midday; very slow trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 140 points. The interest rate products are higher. The dollar index is 12 higher. Energies are mostly higher with crude up 0.20. Livestock trade is lower. Precious metals are mixed with gold up $7.10. CORN Corn trade is 2 to 3 cents lower at midday with trade testing the lows again after two sided trade overnight. December hit a new 2017 low at $3.63 1/4 yesterday and came within a quarter cent this morning. Long liquidation this afternoon into Friday could help accelerate downside if the new low gives way. Ethanol futures have edged slightly lower this morning. The weekly export sales were sub-par with 62,400 metric tons of old crop sales, and 671,800 of new crop sales. Chinese corn values have hit a 14 month high as well and gulf origin US corn is cheaper than South American corn so export optimism is improving with the lower prices. On the December chart support is at $3.63 1/4 which is the new low for the move and the lower Bollinger Band. Resistance is at the 10-day moving average at $3.76. SOYBEANS Soybean trade is 1 to 2 cents higher at midday with light buying after rains disappointed in Iowa again. Meal is flat to $1 higher with bean oil 15 points higher. Trade will assess crop progress in the drier areas, which more potential short covering if the trade decides it was more disappointing, along with whether or more new demand surfaces with more frame contracts signed. The weekly export sales were good at 453,200 metric tons of old crop, and 899,200 new crop, 74,200 metric tons of old crop meal, 68,800 new, 23,900 new and 3,000 old of oil. On the November chart support is at the fresh low for the move at $9.21, then the one-year low printed in June at $9.07. The 10-day moving average is chart resistance at $9.47 3/4. WHEAT Wheat trade is mixed with the winter wheat contracts down 4 to 7 cents and Minneapolis up 3 to 6 cents. Both Kansas City and Chicago have slipped to new contract lows with these markets now oversold. The trend of growing global supplies has not been broken; lower prices economically discourage production and encourage greater usage. This is what the market is doing. The poor spring wheat production year is expected to keep Minneapolis firm versus Chicago or Kansas City and just stay volatile. The dollar is working against U.S. business at the moment, with Russia still securing the bulk of the upfront business. Exports did improve on the week at 633,800 with the weak dollar last week. On the December Kansas City contract support is the $4.41 3/4 fresh low with resistance at the 10-day at $4.72. 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.