DTN Midday Grain Comments 09/08 11:21

DTN Midday Grain Comments 09/08 11:21 All Grains Higher at Midday Soybeans are the upside leader at midday with noted outside market support and short profit taking. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 260 points. The interest rate products are higher. The dollar index is 25 points lower. Energies are mixed with crude up $0.10. Livestock trade is mostly higher. Precious metals are higher with gold up $4. CORN Corn trade is 4 cents higher at midday with trade opening 2 cents higher and staying positive all session. The USDA monthly Supply and Demand Estimates are out Friday; trade Tuesday -- Friday morning should be mostly position squaring then we will trade the report on Friday. Last month trade was limit down briefly trading to a new contract low. Since we have held above the contract low albeit we came within 3 cents of it on Friday; the action through midday illustrates reluctance to sell fresh lows ahead of the report. The weekly export inspections were decent at 894,809 metric tons. The USDA announced 120,000 metric tons of corn sold to Mexico. On the December chart support is at the low from this Friday at $3.60 and then the contract low at $3.57. Resistance is at the $3.74 20-day moving average then the $3.86 high printed two weeks ago. SOYBEANS Soybean trade is 12 to 15 cents higher at midday with trade finding support from light commercial buying along with short profit taking. Meal is $3 higher and oil is 50 to 60 points higher. Beans have carved out a range in the $8.60 to $8.90 area with trade hanging in the middle of the range this morning. It is also important to point out an export demand concern especially with the Chinese economic jitters, although we did see another export sale of 120,000 metric tons announced this morning. The new crop export pace has begun to pick up but remains in the 60% level of a year ago while the USDA goal for the new-crop year is only slightly below old-crop sales. Weather has been good in July and August and behind our bear market; the September weather pictures does not change this at this juncture with crop conditions expected to be steady, with maturity near normal. The weekly export inspections were soft at 93,308 metric tons. On the November soybean chart support is at the contract low of $8.55 is support with resistance at the 10-day at $8.75, and the 20-day at $9.00. WHEAT Wheat trade is flat to 5 cents higher across the three contracts with Chicago trade leading at midday. European wheat values have been rising, which should add some follow through support if they can be sustained. Weak fundamentals and chart pressure will continue to limit upside, some profit taking vs. shorts could pick up ahead of the report this Friday. Planting is just around the corner which could trigger a bit of a rally to secure acres as well with rains in the west limiting enthusiasm in the near term. The weekly export inspections were a bit disappointing at 371,343 metric tons, with harvest effectively complete. Chart resistance for the December Kansas City contract is at the $4.82 10-day moving average. Support is at the $4.65 fresh contract low reached this Friday. 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.