DTN Midday Grain Comments 09/16 11:28

DTN Midday Grain Comments 09/16 11:28 All Grains Higher at Midday Trade is higher across the board at midday led by beans. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 100 points. The interest rate products are mostly higher. The dollar index is 70 points higher. Energies are lower with crude down 0.80. Livestock trade is higher. Precious metals are lower with gold down $5.00. CORN Corn trade has turned 5 to 7 higher at midday, after a soft start to the overnight trade; some heavy rains and spillover support from soybeans has bulls in control. Ethanol margins are seeing pressure this morning with firmer corn trade and weaker energy values. Storms went through last night in many areas which should push harvest back, but warmer temperatures overall will help move things long with more results expected soon with reports out of Illinois showing the best so far, with parts of Nebraska and Kansas disappointing early on. Basis remains flat going into the weekend, with broader pressure expected next week. The December contract chart support is at the $3.26 1/2 weekly low then the contract low at $3.14 3/4; resistance is at the $3.32 20-day which we have edged through at midday then the $3.39 50-day. SOYBEANS Soybean futures are 10 to 14 cents higher at midday with good buying developing during the day session. Meal is $5 to $6 higher and oil is 10 to 20 points higher. The we have seen short covering develop when we failed to challenge the $9.37 lower this week, with some of today's action likely profit taking vs. post report shorts. The USDA report will continue to weight on beans and limit upside especially if early harvest yield reports are high with a lot beans ready to go in the next ten days. November chart resistance is at the 10-day at $9.58, which we are above at midday then the 200-day at $9.69 with support at the 5-month low. WHEAT Wheat trade is 1 to 4 cents higher across the three contracts at midday, with the EU grade contract up slightly as well. Big supplies will continue to hang over this market and limit upside on bounces with the dollar limiting upside as well. Low prices are not encouraging extra winter wheat acres for 2017 production so forward thinking is where friendly arguments will likely come from with planting around the corner. After the ergot issues last week, the Egpytian tender today was greeted with no offers. On the Kansas City December chart, support is at the 10-day at $4.15, with the $3.95 low major support. Resistance is at the $4.20 20-day moving average, which we are just below. 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.