DTN Midday Grain Comments 09/25 10:56

DTN Midday Grain Comments 09/25 10:56 Grains Are Mixed at Midday Spring wheat leads mixed to mostly lower midday action. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer with the Dow 135 higher. The dollar index is 60 points higher. Interest rate products are firmer. Energies are weaker with crude down $0.90. Livestock trade is mostly higher. Precious metals are weaker with gold down $18. CORN Corn is narrowly mixed with trade fading back from the new highs scored overnight in choppy midday action. Rains will slow early harvest in many areas in the short term, but temps should remain warm with some cooler air to the north next week which will be watched. Corn basis is expected to continue to see pressure as harvest gets going but remains elevated in many areas. Ethanol production was a three-year low at 943,000 barrels per day, down 60,000 from last week, with stocks down 738,000 from last week. On the December contract, support is at the 20-day at 3.67 with the upper Bollinger Band above trade at 3.80. SOYBEANS Soybeans are 4 to 7 cents lower with trade pulling back from $9.00 again with not enough fresh bullish news to push trade higher even with 581,000 metric tons of sales to China confirmed on the daily wire meal is $1.00 to $2.00 lower and oil is 20 to 30 points lower. Crush margins remain good, but the bull argument needs a positive export story. Economically, U.S. export competitiveness is improving but the real has moved back to the lower end of the range with new lows made this a.m. on the dollar bounce. Bean basis remains flat in the interior. South America will be watched for a turn to wetter near-term weather to get planting underway with parts of Brazil trending wetter, with Argentina expected to be drier. On the November chart, beans are right at the moving averages clustered in the $8.87-8.90 range which we are testing this a.m., with the upper Bollinger Band remaining resistance at $9.06. WHEAT Wheat trade is 2 cents lower to 9 cents higher with spring wheat leading on late harvest problems and quality concerns again this a.m. The Kansas City/Chicago spread is 76 cents, with choppy action continuing. The corn/HRW spread is hanging around the 25-30 cent area moving wheat back into rations again. The spring wheat strength should boost higher protein bids. Winter wheat planting should expand more this week, but the market is not providing incentives to plant any more acres than necessary. The sharply stronger dollar will limit upside The December Kansas City chart support is at the 20-day at $4.00 1/2, with resistance at the upper Bollinger Band at 4.15, which we are just below. 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.