DTN Midday Grain Comments 09/21 11:23

DTN Midday Grain Comments 09/21 11:23 Soybeans Lower at Midday Soybeans slide at midday with corn and wheat near unchanged. 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 14 points lower. Energies are firmer with crude up 0.95. Livestock trade is mostly higher. Precious metals are mixed with gold up $12.30. CORN Corn trade is flat to 2 cents lower at midday with light selling after the strong start to the week, with more harvest pressure expected to build in the near term. The weekly ethanol production report had production down 2.29%, and stocks down 0.95%, with gasoline demand up 2.59%, and ethanol futures are slightly higher at midday. Warmer-than-normal weather should push maturity this week with storms confined to the north and west, with combines running in more areas this week. 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 trade just above the 50-day at $3.37, with another close needed above it to confirm a better pattern. SOYBEANS Soybean futures are 13 to 16 cents lower at midday with harvest pressure with strong yields offsetting another round of export sales. Meal is $5 to $6 lower and oil is 25 to 35 points lower after the strong move in oil to start the week. South American planting progress should continue with improved forecasts 10 days out. Early harvest progress should refill the pipeline, and cause basis to widen to more normal harvest levels, especially in the western belt. The USDA announced sales of 126,000 metric tons to unknow, 118,000 to Taiwain, and 120,000 to China. November chart support is the 10-day at $9.67, then the 20-day at $9.66 followed by the $9.37 multi-month low. Resistaance is at the $9.88 50-day which we failed to hold this morning. WHEAT Wheat trade is 1 to 3 cents higher across the three contracts this morning, with the EU grade contract down slightly with the return of Egypt to the market after dropping ergot standards, and the Morocco buying 145,000 metric tons of hard red wheat this morning. The dollar could swing trade today if there is a big reaction after the Fed statement today. Big supplies will continue to hang over this market and limit upside on bounces, with trade struggling to hold strength this week. StatsCanada production estimates were close to expectations. On the Kansas City December chart our trade is hanging in 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 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.