DTN Midday Grain Comments 09/03 11:34

DTN Midday Grain Comments 09/03 11:34 Corn and Wheat Are Downside Leaders at Midday Corn is 7 to 8 cents lower; soybeans are 4 cents lower, and wheat is 4 to 11 cents lower. Outside markets are negative. By David Fiala DTN Contributing Analyst General Comments Corn is 7 to 8 cents lower; soybeans are 4 cents lower, and wheat is 4 to 11 cents lower. Outside markets are negative. The U.S. stock market indices are softer with the Dow 345 lower. The dollar index is 10 points higher. Interest rate products are weaker. Energies are weaker with crude down 1.80. Livestock trade is firmer. Precious metals are mostly higher with gold 26.00 higher. CORN Corn is 7 to 9 cents lower with trade falling to new lows. Chart selling is picking up during the day session again with a milder forecast and little other fresh news. Ethanol margins remain poor but have been stable with hints of presidential action on the recent waivers. Announcements are expected in September, but trade will likely remain in show-me mode for now with futures holding $1.34. Corn basis remains mixed to firmer overall with harvest getting closer but still too far away in some areas with board prices low. The weekly export inspections were disappointing at 355,411 metric tons. The weekly crop progress is expected to show steady conditions and maturity still well behind normal. For December, nearby chart support is likely the $3.61 1/2 low with the lower Bollinger Band at $3.44 below that with resistance the 10-day at $3.69, with the 20-day next at $3.80. SOYBEANS Soybean trade is 4 to 5 cents lower with trade chopping along with trade concerns and little fresh bullish news to offset the spillover weakness from grains. Meal is .50 to $1.50 lower and oil is flat to 10 points lower. Crush margins remain positive overall, with oil staying towards the upper end of the range, and meal finding support at $289. Basis remains flat overall. The Brazilian real has continued to grind lower with local prices rising as stocks tighten and dry conditions are in place ahead of planting season along with currency controls being imposed in Argentina. The weather looks to be a short-term non-issue for soybeans as well coming forward with maturity remaining the biggest concern with short term concerns limited. Weekly export inspections were very strong at 1.28 million metric tons. Weekly crop progress is expected to show steady conditions and poor maturity. November chart support is the lower Bollinger band at $8.54, with the next round up the 10-day $8.65, which we are just below at midday, with the 20-day just above the market at $8.71, then the upper Bollinger band at $8.89. WHEAT Wheat trade is 4 to 12 cents lower, with deliveries adding pressure to the front months and broad selling with the dollar spike Tuesday morning. The KC/Chicago spread is at 66 cents with Chicago gaining after initial losses. The corn/HRW spread is narrower, back to 23 cents. Spring wheat harvest is trying to play catchup due to the slow start in the northern hemisphere. The dollar remains near the upper end of the range, with choppy trade ongoing. Spring wheat harvest should be passed halfway on the weekly progress report, with export inspections OK at 526,049 metric tons. The December KC chart support is the new low at 3.84 with the first resistance the 10-day at $4.02 and the 20-day at $4.09. 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 (BE) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.