DTN Midday Grain Comments 08/31 11:00

DTN Midday Grain Comments 08/31 11:00 Wheat, Beans Higher at Midday Corn is 2 to 3 cents lower, soybeans are 2 to 3 cents higher, and wheat is 1 to 4 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is weaker with the Dow down 270 points. The dollar index is 30 lower. Interest rate products are firmer. Energies are mixed with crude up $0.05. Livestock trade is firmer. Precious metals are firmer with gold up $1. CORN Corn trade is 2 to 3 cents lower with trade fading off the early highs from the Sunday night open with weather concerns running into overbought conditions and the September contract going into delivery. Ethanol margins are stable with the energy complex holding the recent highs ahead of Labor Day weekend. Basis has remained fairly flat in recent days, with pressure likely at locations with the heat pushing the crop forward. Weekly export inspections were disappointing at 402,216 metric tons. Weekly crop progress is expected to show conditions 2-3% lower than last week with maturity further above normal. On the December contract, trade has support at the $3.49 gap area, with the upper Bollinger Band at $3.64 as resistance. SOYBEANS Soybean trade is 2 to 3 cents higher with a gap higher opening on the forecast remaining dry in many areas, with mixed precip elsewhere with trade now more than a dime off the overnight highs. Meal is $1.00 to $2.00 higher and oil is 10 to 20 points lower. The ral remains in the lower end of the range as Brazilian producers build forward sales ahead of planting. Soybean basis has found spots of support at crushers as well even as crush takes a back seat to export movement heading towards harvest. Weekly export inspections were softer at 804,591 metric tons. Weekly crop progress should show a 2-3% drop with maturity solidly ahead of average. The November chart now has resistance at the $9.66 fresh high scored today with support the 20-day at $9.05. WHEAT Wheat trade is 1 to 4 cents higher at midday with support from the row crops seen early on eroding, with more attention coming for winter wheat planting conditions soon. The dollar is back to the lower end of the range as well. Kansas City is at a 77-cent discount to Chicago with spreads moving back towards the middle of the range, while Minneapolis is back to a 13 cent discount as December becomes the front month. Weekly export inspections remained rangebound at 516,131 metric tons. Winter wheat harvest should be effectively complete with planting coming soon, while spring wheat should be near 2/3rds cut. Kansas City December chart resistance is the upper Bollinger Band at $4.76 that we traded above briefly, and support is the 20-day at $4.46. 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.