DTN Midday Grain Comments 08/27 11:06

DTN Midday Grain Comments 08/27 11:06 Corn, Beans Lower at Midday Soybeans are the midday downside leader. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat with the Dow 7 lower. The dollar index is 5 points lower. Interest rate products are weaker. Energies are mixed with crude up $0.15. Livestock trade is lower. Precious metals are firmer with gold 13.10 higher. CORN Corn is 1 to 2 cents lower at midday with trade continuing to grind along with little fresh news to get buyers excited. Weather should continue to remain a short-term non-issue with continued cool weather the biggest concern at this point as we move towards September. Ethanol margins remain poor with blenders in the best position currently with the last big driving weekend of summer coming up with ethanol futures slightly higher this a.m. Weekly crop progress keeping conditions unchanged at 57% good to excellent, and 13% poor to very poor with 71% in the dough, vs. 87% on average, and 27% dented vs. 46% on average. Basis remains mixed to firmer overall with harvest getting closer but still too far away in some areas. On the September nearby chart support is likely the $3.56 3/4 low with the lower Bollinger Band at $3.47 below that with resistance the 10-day at $3.62. SOYBEANS Soybean trade is 8 to 11 cents lower with trade easily giving up Monday's gains with little news to support fresh buying. Meal is 3.00 to 4.00 lower and oil is 20 to 30 points lower. Crush margins remain positive overall, with oil staying towards the upper end of the range, and meal finding support at $289. Basis remains flat overall. The Brazilian ral has continued to grind lower with local prices rising as stocks tighten and dry conditions are in place ahead of planting season. The weather looks to be a short-term non-issue for soybeans as well coming forward with maturity remaining the biggest concern. Weekly crop progress showed conditions 1 percentage point better at 55% good to excellent, and 13% poor to very poor, with 94% blooming vs. 99% on average, with 79% setting pods vs. 91% on average. September chart support is the lower Bollinger Band at $8.41, with the next round up the 10-day $8.56. WHEAT Wheat trade is narrowly mixed at midday with trade struggling to generate momentum again. The Kansas City/Chicago spread is at 84 with back and forth trade continuing in the spread. The corn/HRW spread is wider, back to 34 cents. Kansas City wheat is now back to competitive on the world market trading as well as into feed rations, although that has faded in recent days. Spring wheat harvest is trying to play catch up with the slow start in the northern hemisphere. The dollar remains near the upper end of the range, with a reversal from Friday overnight. Winter wheat was 96% harvested vs. 99% on average, and spring wheat was 38% harvested vs. 65% on average, and was rated 69% good to excellent, and 6% poor to very poor, down 1 percentage point. The September Kansas City chart support is the new low at 3.80 3/4 with the first resistance the 10-day at $3.89, which we are just below overnight, and the 20-day at $4.01. 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.