DTN Midday Grain Comments 09/22 11:22

DTN Midday Grain Comments 09/22 11:22 Corn Lower, Beans Higher, Wheat Mixed at Midday Mixed trade at midday due to harvest pressure in corn but positive outside markets. 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 lower. The dollar index is 58 points lower. Energies are mixed with crude up 1.05. Livestock trade is mostly higher. Precious metals are firmer with gold up $11.30. CORN Corn trade is 4 cents lower at midday with harvest and light chart pressure noted. Rains hit the north central part of the belt but more widespread rain to slow harvest may not show up until the weekend. Ethanol margins should remain strong for producers with the rally in energy values working higher this morning. Basis pressure should build this week as harvest expands. The weekly export sales were decent at 921,900 metric tons but numbers great than 1 million seem to be needed to generate positive market sentiment. The December contract chart support is at the 10-day at $3.36 then the 20-day at $3.31. We are flirting around the 50-day at $3.36 3/4 here at midday. The August-September high of $3.44 1/4 remains key resistance. SOYBEANS Soybean futures are 4 cents higher at midday with two sided trade seen overnight up to midday. The market is complacent with the battle between harvest pressure and strong demand. Meal is $1 higher and bean oil is 40 to 50 points higher. The USDA announced daily sales of 120,000 metric tons to China, 151,000 to unknown, and 120,000 of optional origin to China. The weekly sales are OK at 875,500 tons of beans, 158,000 of meal, and 2,500 of oil. Early harvest progress should refill the pipeline, with basis moving to more normal levels as premiums evaporate. Trade will be watching closely for another round of sales on the daily wire. South American planting progress should continue with improved forecasts 10 days out. November chart support is at $9.64-7 area where we find the 10-day and 20-day moving averages. Key support is at the $9.37 multi-month low. Resistance is at the $9.84 50-day. WHEAT Wheat trade is narrowly mixed at midday with trade chopping along. The dollar is sharply lower which should add support if sustained. Big supplies will continue to hang over this market and limit upside on bounces, with trade struggling to hold strength this week. There were no offers for the Egyptian tender as the ergot standard change has not been made official yet. The weekly export sales improved a bit at 561,000 metric tons. On the KC December chart our trade is hanging just above 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.