DTN Midday Grain Comments 09/10 11:26

DTN Midday Grain Comments 09/10 11:26 Soy, Wheat Higher at Midday Wheat and soybeans lead mixed midday trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 35. The interest rate products are mixed. The dollar index is 25 lower. Energies are firmer with crude up 0.15. Livestock trade is mixed with the front months leading. Precious metals are firmer with gold up 1.80. CORN Corn trade is flat to a penny lower at midday in quiet action to start the week. Early harvest should begin to expand where the rains moderate with much of the belt drying back out this week with warmer temperatures. Ethanol margins remain tight for producers with futures still below 1.30 a gallon, while blenders remain in good shape. Corn basis has held up pretty well in recent days but more harvest pressure will work in. The weekly export inspections were disappointing at 763,475 metric tons. Weekly crop progress should show steady conditions and maturity still ahead of normal. Expectations for the WASDE report on Wednesday are for corn yield at 177.7 BPA for production of 14.524 billion, down slightly from last month, with ending stocks at 2.027 billion for old crop, and 1.626 billion for new, and world stocks at 154.3 million for new crop. On the December chart support is at the 10-day at $3.63 with the 20-day at $3.68 resistance. SOYBEANS Soybean trade is 2 to 4 cents higher at midday with trade trying build on the strong finish to last week with improved crush margins and talk of a freeze in China. Meal is $1 to $2 higher and oil is flat to 10 points lower. Basis is expected to see more pressure as storage space will be at a premium once harvest gets rolling forward with this week likely to push maturity ahead with rains lingering in the north. Crush margins remain strong with the recent meal rally. Early planting in South America will be getting underway soon, and the Brazil and Argentina currencies remain historically cheap. Weekly export inspections were better than expected at 924,839 metric tons, and the daily wire had sales of 132,000 metric tons to unknown. Weekly crop progress should show steady conditions, and maturity still ahead of normal. The expectations for the WASDE report are for yield at 52.4, and production at 4.653 billion bushels, up from last month, with carryout at 426 million on old crop, and new crop at 826 million bushels, with world stocks 107.7 million metric tons vs. 95.7 on old crop. On the November chart, support is the 10-day at $8.40, which becomes support with the 20-day at $8.58 as resistance. WHEAT Wheat trade is 2 to 7 cents higher this morning with wheat trade looking to see some short covering after the recent aggressive selling with Australian crop estimates falling 13% from last year. The U.S. dollar is chopping along at the lower end of the range. Matif wheat is firmer as well. Russian wheat remain mostly dry into planting with near exports expected to remain aggressive. Australia looks to have more mixed weather in the near term with longer-term dryness still an issue as we get closer to harvest there. The weekly export inspections were inline with recent weeks at 429,081 metric tons. The WASDE report is looking for world wheat stocks at 273.2 million metric tons for old crop, and 257.9 for new, down slightly from last month on new crop. On the December Kansas City chart, we have support at the lower Bollinger Band at $5.06 with resistance the 10-day at $5.31. 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.