DTN Midday Grain Comments 09/04 11:31

DTN Midday Grain Comments 09/04 11:31 Wheat Lowest at Midday Row crops firmer at midday with trade coming back from early lows, with wheat firming off early heavy selling. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 65. The interest rate products are firmer. The dollar index is 45 higher. Energies are mixed with crude up 0.20. Livestock trade is firmer. Precious metals are weaker with gold down 9.90. CORN Corn trade is 2 to 3 cents higher with trade firming off the early selling pressure to build on the gains from Friday. Early harvest should continue to expand this week where rains miss. Ethanol futures have firmed back to $1.30 as margins continue to narrow as summer driving season wraps up with blender margins at nearly a dollar as well. Corn basis has held up pretty well in recent days but more harvest pressure will work in. The weekly export inspections remain strong at 1.335 million metric tons. Weekly crop progress is expected to show steady conditions, and progress remaining ahead of normal. On the December chart, trade got back above the 10-day at $3.62 which becomes support with the 20-day at $3.70 resistance and a short term sell target. SOYBEANS Soybean trade is 4 to 7 cents higher with firmer trade developing as products find good demand to start the week. Meal is $6 to $7 higher and oil is 5 to 15 points higher. Basis is expected to see more pressure, especially along areas that feed the PNW with the Ohio River valley widening quickly with early harvest just around the corner. Heavy rains could be an issue in some areas in the near term especially in the northern part of the belt. Weekly export inspections showed some strength at 769,357 metric tons. Weekly crop progress is expected to show steady conditions and maturity remaining ahead of normal. On the November chart support is the low at $8.29, and resistance the 10-day at 8.49 which we are testing at midday. WHEAT Wheat trade is 13 to 18 cents lower with Russia passing on export restrictions for now keeping trade very active in the recent range with nearly 30 cent lower trade early in the session. Spring wheat should being effectively wrapped up in the U.S. soon harvest wise. The U.S. dollar has rebounded back into the upper part of the recent range. Matif wheat is lower as well. Russian domestic values are still at a level that will limit competitiveness coming forward and early planting weather is dry. Australia looks to have more mixed weather in the near term. Weekly export inspections remain sluggish at 391,920 metric tons. On the December Kansas City chart, we have support at the lower Bollinger Band at $5.17 with resistance the 200, say at $5.42. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.