DTN Midday Grain Comments 09/28 11:18

DTN Midday Grain Comments 09/28 11:18 Grains Quiet to Lower at Midday The U.S. stock market indices are lower with the Dow down 20 points. The interest rate products are lower. The dollar index is 25 points higher. Energies are mixed with crude down 0.10. Livestock trade is mostly higher at midday in active trade. Precious metals are lower with gold down $14. By David Fiala DTN Contributing Analyst General Comments CORN Corn trade is 1 to 2 cents lower at midday with trade continuing to chop around in the lower end of the recent range with additional duties on DDG's being announced by China and the fourth-largest sale on record with Mexico buying 1.577 million metric tons of corn. The weekly ethanol production showed production up 8,000 barrels per day, and stocks were up 600,000 barrels, ethanol futures have edged a bit higher at midday. The weather forecast looks open except for the east which should allow better harvest progress in the west. USDA is releasing the September 1 Quarterly Stocks report on Friday morning. Expectations are at 1.757 billion bushels with a range estimates of 1.665-1.862 billion versus 1.716 on the September WASDE old crop balance sheet. On the December contract, chart support is at $3.26 1/2, the three-week low, then the contract low at $3.14 3/4. The 20-day at $3.31 3/4 is nearby resistance then $3.40, last week's high, then $3.44 1/4, the August-September high. The trend has turned lower, which could trigger some additional long liquidation ahead of the report. SOYBEANS Soybean futures are narrowly mixed at midday with demand helping trade to firm off the overnight lows as the USDA announced 133,00-metric tons sold to China, and 211,171 to unknown. Meal is $3 to $4 higher and oil is 50 to 60 points lower. Harvest pressure should continue to build with the more open weather in the west allowing farmers to play catch up. The Quarterly Stocks average trade guess is 202 million bushels versus 195 on the September WASDE old crop carryover estimate. The range of estimates is 158-256 million. The daily export wire has been active in recent days, with trade expecting China to remain actiove. November soybean support is at $9.37, the previous the 5-month low, then $9.34, our low yesterday. Resistance is at the $9.60 area where we find both the 10-day and 20-day moving averages. WHEAT Wheat trade is flat to 6 cents lower higher at midday with light buying surfacing during the day session. The dollar remains fairly rangebound, keeping the world export competitiveness around the same as recent days. Any positive fresh export news will limit downside, but we need consistent news to get some demand buying going in the bigger picture, Egpyt is expected to return for more coverage soon, and Jordan was unable to secure supplies on its recent tender. The September 1 wheat stocks average trade guess is at 2.398 billion bushels; the range of estimates is 2.1-2.558 billion. On the Kansas City December chart support is at $4.15, the 20-day and lowest major moving average; resistance is at $4.25 3/4 which is the September high. David Fiala can be reached at dfiala@futuresone.com Follow Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.