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DTN Midday Grain Comments     08/10 10:57

   Corn, Soybean, Wheat Futures All Higher at Midday

   Corn futures are 8 to 11 cents higher at midday Wednesday; soybean futures 
are 22 to 37 cents higher; wheat futures are 14 to 17 cents higher. 

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn futures are 8 to 11 cents higher at midday Wednesday; soybean futures 
are 22 to 37 cents higher; wheat futures are 14 to 17 cents higher. The U.S. 
stock market is sharply higher with the DOW up 540 points. The U.S. Dollar 
Index is 155 points lower. Interest rate products are mixed. Energies are mixed 
with crude down 1.00. Livestock trade is firmer. Precious metals are firmer 
with gold $2.00 higher.

CORN:

   Corn futures are 8 to 11 cents higher at midday with buying continuing and 
firm spread trade as the we work to balance weather and demand ahead of 
Friday's WASDE report along without outside market support Wednesday. 
Short-term forecasts show drier weather for most with warmer-than-normal 
temperatures for the center and western parts of the Corn Belt. Moderations is 
expected the second week along with some spotty showers in the west. Ethanol 
margins will continue to be limited by driving demand and seasonal slowdowns 
with unleaded futures just off six-months lows to crimp blending margins if 
sustained. Weekly ethanol production was down 21,000 barrels per day (bpd) with 
stocks down 138,000 barrels. Basis will be watched to see how much further 
strength fades, especially with the board rally and harvest starts in the 
South. On the WASDE report, yield is expected to come in at 175.9 bushels per 
acres (bpa) with trade looking for demand cuts to balance the yield decrease. 
On the September chart, support is the fresh low at $5.61 1/2 scored two weeks 
ago with the lower Bollinger Band just below that at $5.60. Trade is holding 
back above the 20-day moving average at $5.99 and the upper Bollinger Band is 
the next round up at $6.29, which we remain a touch below. 

SOYBEANS:

   Soybean futures are 22 to 37 cents higher at midday with strong spread 
action continuing with September at recent highs, while November struggles to 
push back to the $14.50 area, holding just above at midday. Meal is $14.00 to 
$15.00 higher and oil is 120 to 130 points higher. For the WASDE report Friday, 
trade is looking for an average yield of 51.1 bpa, down just slightly from 
July. Biodiesel margins remain positive but narrowing in recent days. South 
America is on post-harvest footing for shipping with their advantage to persist 
until September. The bulk of the U.S. is heading into the start of pod-fill 
season with warmer and drier weather for much of the belt this week before 
moderating the next with mixed rain potential. Basis is fading a bit at 
processors and exporters in recent days as early harvest in the south draws 
closer with China securing another 196,000 metric tons (mt) of new crop on the 
daily export wire. On the September soybean chart, support is the 20-day moving 
average at $14.14, which we are well above, with the Upper Bollinger Band at 
$15.32, which we are above at midday.

WHEAT:

   Wheat futures are 14 to 17 cents higher at midday with trade pushing into 
resistance yet again with support from row crops and harvest pressure easing 
further along with the dollar backing away from the highs. Plains weather looks 
warmer and drier this week with moisture needing to be built before planting 
time, while spring wheat sees heat with harvest hitting full stride short term. 
The dollar is fading further from the recent highs as the pace of inflation 
showed easing Wednesday morning along with Black Sea potential still being 
watched as Romania estimated production off 18% on the year. The KC September 
chart has resistance at the 20-day moving average above the market at $8.57, 
which we are above again at midday, but we have failed to hold on , recent 
tests; the Lower Bollinger band at $8.23 is the next round down.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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