DTN Midday Grain Comments 09/07 11:34

DTN Midday Grain Comments 09/07 11:34 All Grains Higher at Midday Row crops lead trade higher at midday with slow but higher momentum. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 50 points. The interest rate products are mixed. The dollar index is 12 points higher. Energies are mixed with crude up 0.10. Livestock trade is firmer. Precious metals are mixed with gold down $4.90. CORN Corn trade is 3 to 4 cents higher at midday taking us to a one-week high, which has picked up light chart buying. Spillover support is also noted from firmer soybean trade. Ethanol margins remain fairly stable with good margins encouraging production. Corn basis will remain on the defensive with more harvest getting underway this week with wetter weather likely preventing a very strong pace to start with most action south of I-70 for now. The conditions report had ratings down 1 percentage point at 74% good to excellent, and 7% poor to very poor. Progress rated the crop at 96% in the dough vs. 94% on average, 76% dented vs. 69% average, and 18% mature vs. 20% on average. On the chart, trade has support at the $3.14 3/4 low, with then the 10-day of $3.26 which slipped past yesteray, and the 20-day at $3.31 as first resistance, which we are testing at midday. SOYBEANS Soybean futures are 12 to 15 cents higher at midday due to light chart buying and talk of strong demand. Meal is $5 to $6 higher this with oil flat to 10 points higher, with meal showing more strength than oil for the first time in awhile. There were sales announced of 220,000 metric tons to China this mornig and 264,000 to unknown. The marketplace is looking for the daily export activity wire to remain active as we move into September, with the two sales today keeping things active. Early planting in Brazil is now about 7-10 days away which will start attracting more attention soon with dry conditions to start. Wetter weather in much of the belt should help the crop to finish out along with warmer temperatures pushing trade with conditions remaining steady at 73% good to excellent, and 7% poor to very poor. Progress was rated at 97% setting pods, same as average, with 12% dropping leaves, also same as average. On the November soybean chart support is the $9.38 area that has held this week, with the $9.30 April low below that, with first resistance the 200-day at $9.67 above that, which we are above this morning. WHEAT Wheat trade is 2 to 4 cents higher across the three contracts at midday following the lead of the row crops, along with the break in the dollar to start the week. Canadian harvest should continue to move along, with Russia nearing the end of their harvest. The Stats Canada report had stocks at 5.017 million metric tons, above expectations of 4.30 million metric tons, but down from 7.15 last year. U.S. export competitiveness has improved, with more demand showing for HRW for milling, with Russia still holding the edge to North Africa with more tenders scheduled this week. U.S. spring wheat harvest was rated at 91% complete vs. 75% on average. On the Kansas City December chart support is now the $3.95 low from last week, with trade well below the nearby moving averages with the 10-day at $4.12 first resistance which we are testing this morning. 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.