DTN Midday Grain Comments 09/25 11:37
25 Sep 2017
DTN Midday Grain Comments 09/25 11:37 Grain Mixed at Midday Mixed midday trade with wheat higher, corn a penny lower and beans down a dime. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower; the DOW futures are down 75. The interest rate products are higher. The dollar index is 38 higher. Energies are higher with crude up 1.10. Livestock trade is limit lower for cattle, and mixed on hogs. Precious metals are mixed with gold up $9.50. CORN Corn trade is narrowly mixed with spillover support from wheat helping to trigger some two sided trade as soybeans move lower, with position squaring likely as we head towards the quarterly stocks report on Friday. Broader yield results should continue to flow in this week, with progress and maturity expected to remain behind pace on the report this afternoon. Weekly export inspections remained mediocre at 738,779 metric tons. Ethanol margins remain stable with futures edging lower this morning. Harvest pressure on basis should increase but major moves will likely be limited. On the December chart support is now the 10-day and 20-day moving average at 3.51-53 which trade is around at midday with $3.46 as the recent low below that, and the recent $3.62 high as resistance. SOYBEANS Soybean trade is 7 to 12 cents lower at midday with trade failing to hold the 200-day moving average at $9.78 that we moved above on Friday at midday. Meal is $4 to $5 lower and oil is 10 to 20 lower. Trade will be watching to see if further sales are announced on the daily wire with the strong recent pace with nothing on the wire this morning. Yield numbers as harvest progresses should give us some direction ahead of the report with the western belt being slowed by heavy rains. South American planting should improve into the beginning of October with some dryness in Brazil lingering. The weekly crop progress report should show maturity and harvest pace just behind normal. The weekly export inspections remained solid at 1.03 million metric tons. On the November chart support was the 200-day at $9.78 with the 50-day at $9.67 below that, with resistance the August high of $9.88. WHEAT Wheat trade is 2 to 12 cents higher with spring wheat leading trade off initial overnight losses with winter wheat scoring new highs for the move. Australia continues to see some struggles as the crop emerges from dormancy, while the large Russian crop will continue to keep pressure on the ability of the U.S. to compete on the world market, especially if the sharp dollar rally this a.m. can be sustained. Egypt is starting to look around for cargos again with the advantage remaining with the Black Sea. Dry conditions on the plains will likely continue to slow planting progress, with slightly below normal progress expected this afternoon, with export inspections improving slightly to 499,995 metric tons. On the December Kansas City contract 20-day at $4.41 is support the 50-day at 4.65 is resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at
[email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.