DTN Midday Grain Comments 10/02 11:03

DTN Midday Grain Comments 10/02 11:03 Grains Lower at Midday Trade is lower across the board at midday, keeping action rangebound. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher; the Dow futures are up 65. The interest rate products are mostly lower. The dollar index is 55 higher. Energies are lower with crude down 1.50. Livestock trade is mixed. Precious metals are lower with gold down 8.10. CORN Corn trade is 3 to 5 cents lower at midday with heavier selling picking up during the day session with a negative commodity environment and harvest pressure to start the week. Ethanol margins are seeing some light pressure to start the week, but remain in the recent range. Harvest pressure on basis should increase in the near term with continued issues with barge freight and water levels. Weekly Crop Progress is expected to keep maturity and harvest behind pace. Weekly export inspections were mediocre at 782,346 metric tons, and Mexico bought 597,494 metric tons on the daily wire. On the December chart support, trade is back just below at the 10- and 20-day again at $3.52-$3.53 with $3.46 below that as the September low as the narrow recent range continues. Longer-term resistance is the recent high at $3.62. SOYBEANS Soybean trade is 7 to 12 cents lower at midday with selling pressure this morning as harvest expands. Meal is $2 to $3 lower and oil is 40 to 50 points lower. Yield numbers as harvest progresses will help to steer trade with resumption of harvest as rain effects fade, but the west was slowed again by the systems moving through. South American planting should improve into the beginning of October with the longer-term pattern remaining unclear. Weekly Crop Progress is expected to keep maturity lingering slightly behind normal, with export inspections a bit softer at 894,250 metric tons, and 132,000 metric tons sold to China on the daily wire. On the November chart, the recent lows at $9.37 remain support, with the 20-day at $9.66 new resistance above the market after failing to hold it overnight, and $9.77 resistance where the 200-day moving average is found. WHEAT Wheat trade is 5 to 18 cents lower at midday with spring wheat trade continuing to add pressure after the larger-than-expected production number on Friday. On the report, all-wheat stocks were 2.253 billion bushels, vs. 2.22 bb expected, and 2.545 bb last year. All-wheat production was 1.741 billion bushels, and spring wheat was 416 million bushels vs. expectations of 1.725 bb and 389 mb, respectively. The dollar rally has resumed to start the week, which is also encouraging selling. The weekly Crop Progress report should show planting progress close to normal, and weekly export inspections were improved at 691,971 metric tons. On the December KC, support is the contract low at $4.20 with the 20-day at $4.45 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.