DTN Midday Grain Comments 09/20 11:15

DTN Midday Grain Comments 09/20 11:15 All Grains Higher at Midday Soybeans lead trade at midday with corn and wheat following along. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow up 65 points. The interest rate products are lower. The dollar index is 14 points higher. Energies are mixed with crude up 0.60. Livestock trade is mixed. Precious metals are mixed with gold up $0.80. CORN Corn trade is 2 to 4 cents higher at midday in firm trade with corn following the lead of the soybeans. Ethanol margins are narrowing with energy in the lower end of the range and firmer corn trade. Warmer than normal weather should push maturity this week with storms confined to the north and west. Crop conditions were unchanged at 74% good to excellent. Progress was mixed with 93% dented vs. 91 on average, 53% mature vs. 48% on average, and 9% harvested vs. 12% on average. Basis pressure should build this week as harvest expands this week. The December contract chart support is at the 10-day at $3.36 then the 20-day at $3.31, with resitance at the 50-day at $3.38 which we are above at midday. SOYBEANS Soybean futures are 15 to 20 cents higher overnight with solid commercial buying supporting trade again with USDA announcing 110,000 metric tons sold to China, with meal $4 to $5 higher, and oil 70 to 80 points higher. 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 10-12 days out. Early harvest should get going this week with warmer conditions moving the crop along with wet weather in some areas with the strong nearby basis starting to fade. The crop progress listed 46% dropping leaves, 3% ahead of the average with 4% harvested vs. 6% on average. Soybean conditions were unchanged at 73% good to excellent. November chart support is the 20-day at $9.66, then the 10-day at $9.65 followed by the $9.37 multi-month low. Resistaance is at the $9.88 50-day which we are just above at midday. WHEAT Wheat trade is flat to 4 higher across the three contracts this at midday with the EU grade contract firmer as well. Big supplies will continue to hang over this market and limit upside on bounces, especially with the dollar holding in the upperside of the range ahead of the Fed decision this week. Crop progress listed spring wheat 98% harvested versus the 93% average and winter wheat was listed at 17% planted, 1 percentage point ahead of the average pace with reduced winter wheat acreage expected. The StatsCanada production estimates were close to expectations. Egypt is signialing that they will bend on their ergot restrictions soon. On the Kansas City December chart our trade is just above the area of the 10-day and 20-day moving averages at $4.15-4.17. This market has consolidated this month trade since September 2 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.