DTN Midday Grain Comments 08/25 10:51

DTN Midday Grain Comments 08/25 10:51 Grains Higher at Midday Corn is 7 to 8 cents higher, soybeans are 10 to 11 cents higher and wheat is 9 to 14 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is mixed with the Dow down 130 points. The dollar index is 17 lower. Interest rate products are weaker. Energies are firmer with crude up $0.45. Livestock trade is mixed. Precious metals are mostly weaker with gold down $17. CORN Corn trade is 8 to 9 cents higher at midday with support from the sharper-than-expected condition drop and follow-through buying from the strong start to the week with more export sales of 408,000 metric tons to China and 100,000 to Japan. Ethanol margins are a bit narrower with stronger corn values and a flat energy complex. Basis has remained fairly flat in recent days, with pressure likely at locations with the heat pushing the crop forward. Weekly crop progress showed the good-to-excellent category down 5 percentage points to 64% and 12% poor to very poor, with 88% of the crop in the dough stage vs. 82% average, 44% dented vs. 39% on average, and 5% mature, same as average. On the September contract, trade has support at the Upper Bollinger band at $3.35 with the overnight move, with $3.40 the next round up, which we are testing at midday.. SOYBEANS Soybeans trade is 10 to 11 cents higher at midday with support from conditions and the hot, dry weather until the remains of Hurricane Laura bring relief later in the week for much of the belt. Meal is $1.50 to $2.50 higher, and oil is 20 to 30 points higher. The daily wire has remained active with sales of 142,500 metric tons to unknown and 204,000 metric tons to China. The real has dropped sharply vs. the dollar, as well, in recent days with a rebound to start the week as planting gets closer. Soybean basis has found spots of support at crushers as well. Weekly crop conditions were down 3 percentage points to 69% good to excellent, and 8% poor to very poor, with 92% setting pods vs. 87% on average, and 4% dropping leaves, the same as average. The September chart now has resistance at the $9.17 3/4 fresh high scored last week with support the 20-day at $8.90. WHEAT Wheat trade is 9 to 14 cents higher at midday with support from row crops and reduced crop estimates from Europe. The dollar is at the upper end of the recent range but remains in the low end of the overall range. KC is at an 82-cent discount to Chicago with spreads moving back toward the upper end of the range, while Minneapolis is back to a 15-cent discount. Winter wheat harvest is effectively complete at 97% with spring wheat at 49% vs. 62% on average. Weekly export inspections remained range bound at 569,593 metric tons. KC September chart support is the 20-day at $4.30 we are consolidating above, with the upper Bollinger band at $4.51 the next round of resistance, which we are just below. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2020 DTN, LLC. All rights reserved.