DTN Midday Grain Comments 09/14 11:27

DTN Midday Grain Comments 09/14 11:27 Grains Flat to Slightly Higher at Midday Grain trade is flat to higher across the board at midday in slow trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow up 35 points. The interest rate products are lower. The dollar index is 39 points lower. Energies are lower with crude down 0.90. Livestock trade is mostly lower. Precious metals are higher with gold up $4.40. CORN Corn trade is a penny higher at midday with a range of 3 lower to 2 higher. Follow-through selling following the dime drop yesterday seems to have subsided as of midday but most chart watchers need to see a close back above the 20-day in order to no favor the bear argument. The weekly EIA report seemed to help stop the downside momentum with ethanol production up 0.6%, stocks down 2.16%, and gasoline demand was was off 2% on the week. The wetter near term pattern will slow early harvest which should limit harvest pressure. But warmer temperatures for this weekend should keep maturity normal to slightly ahead of normal, so harvest pressure is very close. A big domestic carryover near 2.4 billion bushels due to a record crop does not have many wanting to buy the 20+ cent bounce on Monday. Most buyers are talking about new contract lows as a target price rather than being aggressive at this juncture ahead of a record corn harvest in the coming two months. The December contract chart support is at the daily low of $3.26 1/2 then the contract low at $3.14. The 20-day at $3.32 is nearby resisance then the $3.39 50-day. SOYBEANS Soybean futures are flat to 2 cents higher at midday with two sided trade so far. Our daily low was a few pennies away from the 5-month low. Meal is $1 to $2 higher and oil is mixed. Argentina is delaying a reduction in export taxes on soybeans which will likely limit planted acres as corn and wheat have no export taxes. Wet weather should help finish longer season beans. The strong demand is expected to limit downside near the recent lows. The daily export wire has been quiet this week with no new sales announced for 5 days as the recent active pace has slowed. It looks like more buyers are waiting on lower prices following the USDA surprise yield estimate rise over 50 bushels per acre on Monday. This has us near the five-month low which is nearby support at $9.37. Expect sell stops below this level. November chart resistance is at the 10-day at $9.58 then the 200-day at $9.69. WHEAT Wheat trade is flat to 2 cents higher with trade following corn a bit higher at midday along with support from the weaker dollar. Supply will continue to overhang the market, with low prices not encouraging extra winter wheat acres for 2017 with planting right around the corner. The export market has been quieter this week, with less tenders being floated out of North Africa after the ergot issues with Egypt last week. On the Kansas City December chart support is at the 10-day at $4.13, with the $3.95 low major support. Resistance is at the $4.21 20-day moving average. The midday maret is about 8 cents off the daily low so market bulls have a little encouragement and momentum. 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.