DTN Midday Grain Comments 09/07 11:48

DTN Midday Grain Comments 09/07 11:48 Grain Trade Mixed at Midday Soybeans trade is a little higher at midday with wheat and corn flat to lower By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 25. The interest rate products are firmer. The dollar index is 25 higher. Energies are weaker with crude down 0.40. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold down 1.00. CORN Corn trade is flat to a penny lower overnight with range-bound action likely to continue into the weekend. Early harvest should begin to expand where the rains moderate. Ethanol futures have found support at $1.28 this morning continuing the tight ethanol margin environment for producers, while blender margins remain stout. Corn basis has held up pretty well in recent days but more harvest pressure will work in. The weekly export sales were OK at 30,100 metric tons of old and 1.03 million tons of new crop sales. On the December chart support is at the 10-day at $3.62 with the 20-day at $3.70 resistance. SOYBEANS Soybean trade is 2 to 4 cents higher at midday with better buying emerging during the day session with meal driving the complex. Meal is $3 to $4 higher and oil is 15 to 25 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. The weekly export sales were soft at 600 metric tons old crop, 672,600 of new, meal with 69,300 old, and 289,500 new sales, and -2,400 net oil. On the November chart support is the low at $8.29, and resistance the 10-day at 8.42, which we are testing at midday. WHEAT Wheat trade is flat to 3 cents lower as we try to form a bottom going into the weekend with trade off the early lows. The U.S. dollar is chopping along at the lower end of the range. Matif wheat came back to flat as well today. 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 with the aggressive nearby pace continuing. 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. The weekly export sales were in line with recent weeks at 379,800 metric tons. On the December Kansas City chart we have support at the lower Bollinger Band at $5.09 with resistance the 10-day at $5.34. 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.