DTN Midday Grain Comments 08/07 11:17

DTN Midday Grain Comments 08/07 11:17 Grains Trending Lower at Midday Trade is flat to lower at midday in quiet trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 300 lower. The dollar index is 24 lower. Interest rate products are weaker. Energies are sharply weaker with crude $2.60 lower. Livestock trade are mosly higher. Precious metals are firmer with gold $31.90 higher. CORN Corn trade is flat to 1 cent lower at midday as trade looks for direction as we head to next Monday's report. Cooler weather and mixed rain amounts look to continue short term. Ethanol margins remain poor with the weekly report showing production 9,000 barrels per day higher, with 1.351 million barrel draw to move stocks to a 4 week low, with ethanol futures fading along with the weaker energy complex today. Basis has started to steady after the recent weakness in some areas as well with harvest starting in the SE U.S. with spreads firming slightly. On the September nearby chart support is the 200-day at $4.00 and then the lower Bollinger Band at $3.88. Resistance is at the 100-day at 4.06, which we closed just below, then the 10-day at $4.07. SOYBEANS Soybean trade is 2 to 4 cents lower with the market still working to make sense of the trade developments and crop development remaining slow with little fresh news this a.m. aside from new crop sale of 165,000 metric tons of new crop sold to unknown. Meal is 1.50 to 2.50 lower and oil 10 to 20 points higher. World export demand remains slow, with the U.S. disadvantage persisting on the currency markets. Weather will come into focus more as we head towards August and pod-fill season with immediate stress looking more limited with the expected cool down. The September chart support is the lower Bollinger Band at $8.44, with the next level up the 10-day at 8.69. WHEAT Wheat trade is 2 to 6 cents lower with wheat remaining ensconced in the lower end of the range. The Kansas City/Chicago spread has seen two sided trade again getting back towards 67 cents from 70 at the highs. The corn/HRW spread is back to 8 cents this morning. Chicago trade has went back to 4 cents of carry after trading to even. Winter wheat harvest is entering the final stages with spring wheat still a little off from hitting full swing with South Dakota rains slowing things in the short term, while Europe and the Black Sea continues to make progress with the strong ruble hindering Russia with export slowing from July, while the dollar elevated overall vs. most currencies. The September Kansas City chart support is the recent low at $4.10 1/4 with the first resistance the 10-day at 4.26, with the 20-day at 4.35 the next round up. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (CZ) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.