DTN Midday Grain Comments 09/26 11:01

DTN Midday Grain Comments 09/26 11:01 Grains Trending Higher at Midday Winter wheat leads mixed midday action. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow 115 lower. The dollar index is 2 points higher. Interest rate products are weaker. Energies are weaker with crude down $0.80. Livestock trade is mostly lower. Precious metals are mixed with gold up $5. CORN Corn is 3 to 5 cents lower with trade seeing broader selling during the day session with little fresh bullish news and overbought conditions. 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 that will be watched. Corn basis is expected to continue to see pressure as harvest gets going but remains elevated in many areas. Ethanol margins remain stable with blender margins taking a hit as unleaded values pull back and ethanol futures edge slightly lower. Weekly export sales remain soft at 494,000 metric tons of corn. 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 is flat to 2 cents higher at midday with trade continuing the recent sideways pattern, with trade firming again off the nearby support levels. Meal is $1.00 to $2.00 lower and oil is flat to 10 points higher. Crush margins remain good, but the bull argument needs a positive export story with another 257,000 metric tons sold to China on the daily wire. Economically U.S. export competitiveness is improving with the real bouncing along with the dollar. 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. Weekly export sales were good at 1.04 million metric tons of beans, 164,300 metric tons of meal combines, and 34,500 of oil. On the November chart are right the moving averages clustered in the $8.87-8.90 range which we are just above this a.m., with the upper Bollinger Band remaining resistance at $9.06. WHEAT Wheat trade is 2 cents lower to 8 cents higher at midday with Chicago wheat leading at midday and spring wheat cooling off. The Kansas City/Chicago spread is 75 cents, with choppy action continuing. The corn/HRW spread is back to the 40 cent area knocking wheat back out of rations. The spring wheat strength should boost higher protein bids if sustained. 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 if sustained, with the upper end of the range being held for now. The weekly export sales were slow again at 283,200 metric tons. The December Kansas City chart support is at the 20-day at $4.01, with resistance at the upper Bollinger Band at 4.16, 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.