DTN Midday Grain Comments 09/05 11:44

DTN Midday Grain Comments 09/05 11:44 All Grains Lower at Midday Trade is lower across the board at midday with early gains fading. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 45. The interest rate products are mixed. The dollar index is 20 lower. Energies are weaker with crude up 0.80. Livestock trade is mostly lower. Precious metals are firmer with gold up 3.50. CORN Corn trade is 2 to 3 cents lower with trade fading from a test of the $3.70 area overnight with pressure from the weakening soybean trade. Early harvest should continue to expand this week where rains miss with heat in the east. Ethanol futures are holding at $1.30 as margins continue to narrow as summer driving season done with blender margins strong. Corn basis has held up pretty well in recent days but more harvest pressure will work in. Weekly crop progress showed conditions down 1 percentage point at 67% good to excellent, and 12% poor to very poor, 96% in the dough, 5% ahead of average, 75% dented, 15% above average, and 22% mature, 11% ahead of average. On the December, 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 8 cents lower after early strength with trade concerns continuing to weigh on the market along with harvest pressure. Meal is $1 to $2 lower and oil is 25 to 35 points lower. Basis is expected to see more pressure as storage space will be at a premium. Heavy rains could be an issue in some areas in the near term especially in the northern part of the belt. Weekly crop progress had conditions unchanged at 66% good to excellent, and 11% poor to very poor, and 16% dropping leaves vs. 9% on average. On the November chart support is the low at $8.29, and resistance the 10-day at 8.46 which we are testing at midday. WHEAT Wheat trade is 2 to 6 cents lower with trade seeing selling return during the day session once again with Russia booking for export sales. Spring wheat is up to 87% complete with harvest, vs. 75% on average. The U.S. dollar is chopping along the middle of the rain. Matif wheat faded 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. 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.