DTN Midday Grain Comments 09/28 10:51

DTN Midday Grain Comments 09/28 10:51 Corn,Wheat Trending Lower Light mixed action ahead of the quarterly stocks report coming at 11AM CT. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 55. The interest rate products are weaker. The dollar index is 15 higher. Energies are firmer with crude up 1.10. Livestock trade is firmer. Precious metals are firmer with gold up $7.10. CORN Corn trade is flat to a penny lower at midday with positioning ongoing for the stocks report. Trade is looking for 2.002 billion bushels of corn as of September 1, with a range of 1.953 to 2.099 billion, which would be down about 10% year on year. Harvest will continue to make mixed progress with the varied weather, and more areas switching to soybeans. Ethanol margins remain tight but futures have been able to firm a little this week with blenders seeing further improvement, while lower sugar prices hang over the world export market. Nearby ethanol futures have edged back over $1.31. Corn basis will likely see more pressure harvest here in the near term but delays could limit pressure in some areas along with the strong booking pace. On the December chart the 10-day, at $3.55, and 20-day at 3.58 today are our support levels. Resistance is at the $3.67 1/2 50-day then the $3.69 3/4 one-month high. SOYBEANS Soybean trade was flat to 2 cents higher with trade holding above $8.50 at midday with trade holding the upper end of the range. Meal is flat to $1.00 higher and oil is 20 to 30 points higher. Report expectations are for 399 million bushels, with a range of 385 million-408 million bushels. Soybean basis remains historically wide across the belt with storage and shipping concerns continuing to dominate with the recent uptick in fresh sales needing to be sustained in the near term. Crush margins remain strong with oil starting to show broader strength with palm oil firmer on the world market. Early planting in South America is underway with little nearby weather concerns. The Brazilian and Argentine currencies remain historically cheap but the real has been able to firm a bit this past week. On the November chart support is the 10- and 20-day moving averages at $8.40, with resistance the recent high at $8.58 scored Tuesday. WHEAT Wheat trade is 3 to 6 cents lower at midday with trade remaining range bound at the lower end of the range. Stocks are expected to be at 2.35 billion bushels tomorrow on a range of 2.155 to 2.443 billion. The U.S. dollar is turning solidly higher as we further digest the U.S. rate hike and ongoing Euro issues. Russia will continue to work on spring wheat harvest and winter wheat planting with little change in the weather patterns, with harvest in Canada trying to finish as well. Australia looks to continue the recent weather pattern with harvest drawing nearer. Matif wheat is slightly weaker this morning. On the December Kansas City chart, we have resistance at the 10-day at $5.20 which with the lower Bollinger Band at $5.00 below that. 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.