DTN Midday Grain Comments 09/12 10:57

DTN Midday Grain Comments 09/12 10:57 Grains Trending Higher at Midday Grain trade is choppy trading flat to a nickel higher ahead of the report. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow up 50 points. The interest rate products are higher. The dollar index is 7 points lower. Energies are lower with crude higher 0.50. Livestock trade has cattle higher and hogs mixed. Precious metals are mixed with gold down $7.30. CORN Corn trade is fractionally higher at midday in pre-report trade; the overnight to midday range has been less than a nickel. The World Agricultural Supply and Demand Estimates (WASDE) are due out at 11 a.m. The average yield trade guess is 172.9 bpa yield versus the 175.1 August number; the range is 170.1 to 175.6. The 2016-17 carryover estimate is at 2.322 billion versus the 2.409 billion August number; the range of estimates is 1.986-2.69 billion bushels. The world carryover is expected to come in at 219.6 million metric tons versus 220.8 last month and 209.3 this past year. The weekly export inspections remained strong at 1.343 million metric tons, and crop condition report this afternoon is expected to keep conditions steady with maturity running just ahead of normal. The December contract chart support is at the $3.32 20-day then the 10-day at $3.26; resistance is at the $3.40 50-day then the $3.44 August high. The chart trend is higher but we saw limited follow-through today so far. SOYBEANS Soybean futures are 2 to 6 cents higher ahead of the report with large production numbers expected to be reiterated along with big demand giving us the two sided trade seen so far. Meal is $3.50 to 4.50 higher and oil is 40 to 50 points lower. The weather forecast looks to be wet and warm in the near term for much of the belt which will be good for late maturing beans. The trade estimates for the WASDE are for the yield number to increase to 49.4 bpa versus 48.9 last month which would increase the production number by around 40 million bushels up to 4.1 billion. The carryover estimate is near unchanged thought due to the good export business; the average trade guess is at 333 million versus 330 last month. The global carryover is expected to be at 70.6 million metric tons versus 71.2 on the August report. The weekly export inspections remained strong at948,570 metric tons, with crop progress keeping conditions steady with maturity running ahead of normal. On the November soybean chart the 20-day at $9.83 is key resistance followed by the $10.05 50-day. Support is at the 200-day at $9.68 then the $9.37 low printed last week. WHEAT Wheat trade is 3 to 5 cents higher at midday in firm pre-report trade across the three contracts. The CME is launching a EU wheat contract today, and it has started trading fairly flat. The Canadian harvest should continue to make good progress. Russia will be wrapping up harvest soon on wheat as well. The average trade guess is for another increase in the domestic carryover; the average is at 1.113 billion bushels versus 1.1 billion last month. The global carryover is expected to slip lightly from the huge 252.8 million metric ton August USDA number. The weekly export inspections were strong at 720,436 metric tons. On the Kansas City December chart support is at the 10-day at $4.08, with the $3.95 low after that. Resistance is at the $4.22 20-day moving average which we are testing this morning. 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.