DTN Midday Grain Comments 09/19 11:11

DTN Midday Grain Comments 09/19 11:11 Grains Mixed at Midday Soybeans are firmer at midday, corn and wheat fail to hold early gains. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow up 110 points. The interest rate products are mixed. The dollar index is 35 points lower. Energies are mixed with crude up 1.10. Livestock trade is lower. Precious metals are mixed with gold up $7.10. CORN Corn trade is 2 cents lower at midday with early momentum fading after testing resistance. Ethanol margins saw some pressure with firmer corn trade and weaker crude last week. Warmer than normal weather should push maturity this week with storms confined to the north. The weekly progress report this afternoon is expected to show maturity just ahead of normal and harvest just behind the normal pace. The weekly export inspections were solid at 1.285 million metric tons. The inspection pace is running well ahead of last year. The USDA announced 191,000 metric tons sold to Mexico. Basis pressure should build this week as harvest expands. The December contract chart support is at the 10-day at $3.34 1/2 then the 20-day at $3.31, with resitance at the 50-day at $3.38 which we have tested but back below at midday. SOYBEANS Soybean futures are 8 cents higher at midday with commercial buying carrying trade as China returns from holiday. Meal is $1 to $2 lower, and oil is 95 to 105 points higher following the lead of palm oil. Trade has found good buying since the midweek challenge last week of the recent lows at $9.37. Early planting in Brazil is underway with early estimates for a 100-103 million metric ton crop and weather has been dry early with improvement expected 10 days out. Early harvest should get going this week with warmer temperatures moving the crop along with wet weather in some areas. The crop progress report is expected to show maturity just above normal. The weekly export inspections were a bit softer than expected at 755,120 metric tons but still a good number. November chart support is the 20-day at $9.68, then the 10-day at $9.63 followed by the $9.37 multi-month low. Resistance is at the $9.90 50-day which is also the September high. WHEAT Wheat trade is 1 to 4 cents lower across the three contracts at midday. Momentum is down at midday. Big supplies will continue to hang over this market and limit upside on bounces. Low prices are not encouraging extra winter wheat acres for 2017 production so forward thinking is where friendly arguments will likely come from with fall planting around the corner. The weekly export inspections were 562,215 metric tons. On the KC December chart our midday market is in the area of the 10-day and 20-day moving averages just above $4.16. This market has consolidated this month trade since September 2nd trading in the $4.05-$4.25 range. Expect follow-through if we move outside of this range. The 50-day at $4.30 is the next major moving average to the upside, and the contract low at $3.95 remains major support. 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.