DTN Midday Grain Comments 09/02 10:43

DTN Midday Grain Comments 09/02 10:43 All Grains Lower at Midday Wheat is leading trade lower across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 155 points. The interest rate products are higher. The dollar index is 40 points higher. Energies are lower with crude down $1.20. Livestock trade is mixed with cattle lower and hogs higher. Precious metals are mixed with gold down $6. CORN Corn trade is 2 to 4 cents lower at midday with trade grinding along in the lower end of the recent range. Warmer weather is expected to continue this week, which should move maturity with harvest expected to become more widespread in the next couple of weeks. Ethanol margins have improved but crude oil will need to find support to bolster blender margins into fall. The weekly ethanol production report showed production down .42%, stocks up 2%, and gasoline demand 2.7% higher, and there were light ethanol imports for the first time in awhile. The USDA monthly report is due out next Friday which will be the next major news trade this week should be active with some direction from the outside markets. On the December chart support is at the low from last week at $3.65 and then the contract low at $3.57. Resistance is at the $3.78 20-day moving average then the $3.86 high printed last week. SOYBEAN Soybean trade is 5 to 10 cents lower with outside market pressure overwhelming the early commercial buying. Meal is $1 to $2 lower and oil is 40 to 50 points lower. Beans are starting to carve out a range in the $8.60 to $8.90 area with trade in the middle to lower part of that range this morning. The weather is still important to determine how the crop will finish out but few worries are around with dry pockets as we head towards the finish. On the November soybean chart support is at the contract low of $8.55 is support with resistance at $8.88 the previous low then the 20-day at $9.08. WHEAT Wheat trade is 7 to 11 cents lower at midday with the stronger dollar and flat row crop trade adding to the defensiveness this morning with the Kansas City contract making new lows again. Weak fundamentals and chart pressure will continue to limit upside, but some profit taking vs. shorts is probably needed in the near term, but further shorts continue to be added for now. Spring wheat harvest will be wrapping up soon which should take some of the pressure off the Minneapolis contract. Chart resistance for the December Kansas City contract is at the $4.89 10-day moving average. Support is at the $4.71 fresh contract low reached today. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.