DTN Midday Grain Comments 09/06 11:42

DTN Midday Grain Comments 09/06 11:42 Grains Mixed at Midday Row crops are near unchanged, with wheat working lower. 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 weaker. The dollar index is narrowly mixed. Energies are weaker with crude down 1.10. Livestock trade is mixed. Precious metals are firmer with gold up 4.20. CORN Corn trade is narrowly mixed at midday with spillover pressure from the wheat limiting gains. Early harvest should continue to expand this week where rains miss with heat in the east with varied yields so far with next week's weather potentially more conducive to progress. The weekly ethanol production had production up 17,000 barrels per day, with stocks down 400,000 barrels with some light imports again this week, with ethanol futures sinking back below $1.30. Corn basis has held up pretty well in recent days but more harvest pressure will work in. The weekly export sales will be delayed until Friday. 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 flat to 2 cents higher at midday with trade carving outside sideways action as well. Meal is $3 to $4 higher and oil is 5 to 15 points lower. Basis is expected to see more pressure as storage space will be at a premium once harvest gets rolling forward. Heavy rains could be an issue in some areas in the near term especially in the northern part of the belt as leaves continue to drop off the plants. Crush margins remain strong with meal finding footing this week. Early planting in South America will be getting underway soon, and the Brazil and Argentina currencies remain historically cheap. On the November chart, support is the low at $8.29, and resistance the 10-day at 8.42. WHEAT Wheat trade is 3 to 7 cents lower with early gains fading again with buying enthusiasm limited as the U.S. struggles to export wheat in the near term. The U.S. dollar is chopping along at the lower end of the range. Matif wheat faded as well this morning. Russian domestic values are still at a level that will limit competitiveness coming forward and early planting weather is dry but that is more of a fall story at this point. Australia looks to have more mixed weather in the near term with longer-term dryness still a concern with production estimates due out next week. On the December Kansas City chart we have support at the lower Bollinger Band at $5.13 with resistance the 200-day at $5.42. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.