DTN Midday Grain Comments 08/04 12:10

DTN Midday Grain Comments 08/04 12:10 Grains Lower at Midday Corn is 5 to 6 cents lower, soybeans are 12 to 13 cents lower, and wheat is 3 to 10 cents lower. David Fiala,DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 100 points. The dollar index is 6 points lower. Interest rate products are firmer. Energies are firmer with crude up $0.40. Livestock trade is mixed. Precious metals are higher with gold up $25. CORN Corn trade is 5 to 6 cents lower at midday with steady conditions and larger yield estimates pressuring the market. Ethanol margins are a little narrower with the flatness in energies and the end of summer driving season looming. Basis has remained fairly flat in recent days, with isolated pockets of pre-harvest strength for now. Weekly crop progress had corn at 72% good to excellent, and 7% poor to very poor, unchanged on the week, with 92% silking vs. 87% on average, and 39% in the dough vs. 33% on average. On the September contract, trade continues to have resistance at the 20-day at $3.28, with chart support at the lower Bollinger band at $3.13 which we are testing at midday. Soybeans Soybeans trade is 12 to 13 cents lower at midday with the condition report and yield estimates also weighing on the soybean action with further export business needed as a demand driver. Meal is 3.00 to 4.00 lower and oil is 10 to 20 points higher. The ral remains at the upper point of the recent range vs. the dollar, which should keep new crop interest robust, although we are losing ground to start the week. Weekly crop progress showed conditions 1% better at 73% good to excellent, and 5% poor to very poor, with 85% blooming vs. 82% on average, 59% setting pods vs. 54% on average. The September chart now has resistance at the 20-day at 8.90 which are pulling back from, and support the lower Bollinger band at 8.74. WHEAT Wheat trade is 3 to 9 cents lower at midday with trade testing the lower end of the recent range as spring wheat harvest expands and winter wheat wraps up. The ruble is holding vs. the dollar. KC is at a 87-cent discount to Chicago with spreads back to the top end of the range, while Minneapolis is back to a 8 cent discount with slight weakness in the intermonth spreads. Weekly crop progress showed harvest 85% complete vs. 88% on average, with spring wheat 73% good to excellent, and 5% poor to very poor, and 5% harvested vs. 10% on average. KC September chart support is the recent low at $4.23 3/4, with the 20-day back above the market as nearby resistance at $4.45. 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 (c) Copyright 2020 DTN, LLC. All rights reserved.