DTN Midday Grain Comments 09/01 11:38

DTN Midday Grain Comments 09/01 11:38 All Grains Higher at Midday Corn is leading grains to the upside up nearly a dime at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 80 points. The interest rate products are mostly higher. The dollar index is 35 points lower. Energies are weaker with crude down 1.30. Livestock trade has hogs mixed and cattle sharply lower. Precious metals are higher with gold up $5. CORN Corn trade is 8 to 9 cents higher at midday due to some short profit taking following the test of the $3 level yesterday on nearby September. Outside market pressure is limiting upside. The weekly export sales were good but not great and we may have some nervous shorts around looking to take profits, and buyers wanting to catch a longer term low here. But the fact remains we have a record crop yet to be harvested so unless some yield-changing news comes about, it will be difficult for the market to go anywhere. Longer term, the new crop 2017 prices, that dipped below $3.60 yesterday, will bring about concern about planted 2017 domestic acres. When future prices are at or below the cost of production it tends to limit fundamental bearishness even if our current balance sheet may suggest lower prices. On the December chart support is at the $3.14 3/4 low with resistance at the 10-day of $3.29. SOYBEANS Soybean futures are 1 to 3 cents higher at midday with mixed action so far in the session. Meal is up $1 and bean oil down 28. Outside markets are weighing on the complex. The weekly sales were good again so demand continues to support arguments that even with the big crop we do not need to go down in print new contract lows. But on the same note, with big supplies few see reason to chase any rally either. The move above $10 in August failed last week as an illustration of this. Chart selling yesterday took us to the lowest futures prices since April. Even though we are higher at midday if we cannot get back above the $9.66 200-day, which is the lowest major moving average, we should not be surprised to see technical selling show up heading into the long weekend. On the November soybean chart support was at the $9.60 low from Friday with the 200-day at $9.66 above that; longer term support is the $9.30 area from April, with the $9.38 low from Thursday above that. WHEAT Wheat trade is 5 to 9 cents higher at midday with spillover support from corn, and light profit taking by market shorts. Wheat took another tumble last week when most contracts saw new lows. We are bouncing out of that, but the poor weekly sales number this morning does not give market bulls confidence at this juncture. The weekly sales were only 279,400 tons. Canadian harvest is hitting full stride or will be providing harvest pressure and Russia looks to continue an aggressive export pace with export duties being suspended. The USDA also announced a sale of Hard red wheat to unknown of 125,000 metric tons, with U.S. milling grade wheat the best deal in the world right now. We just need to see the business. On the Kansas City December chart support is now the $3.95 low from yesterday with resistance at the 10-day at $4.20. 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 2016 DTN/The Progressive Farmer. All rights reserved.