DTN Midday Grain Comments 09/17 11:37

DTN Midday Grain Comments 09/17 11:37 Corn, Soybeans Lower at Midday; Wheat Mixed Trade is lower at midday with early wheat gains fading. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 10. The interest rate products are mixed. The dollar index is 40 lower. Energies are mostly higher with crude up 0.05. Livestock trade is mixed after early pressure. Precious metals are firmer with gold up $6.50. CORN Corn trade is 3 cents lower with trade easing into new lows on the December contract to start the week. Wetter near-term weather may slow harvest progress in the center of the Corn Belt later this week. Ethanol margins remain tight with futures still on the low end of the range, while the blender margins remain solid. Corn basis will likely see more harvest pressure here in the near term. The weekly progress report is expected to show steady conditions with maturity and harvest ahead of normal. The weekly export inspections were good at 1.03 million metric tons. On the December chart, support is at the low at $3.48 1/4 with the 10-day at $3.60 as resistance. SOYBEANS Soybean trade is 4 to 6 cents lower at midday with pressure from the ongoing trade concerns and early harvest. Meal is $2.50 to $3.50 lower, and oil is flat to 10 points lower. Soybean basis is expected to see more pressure as storage space will be at a premium once harvest gets rolling with rain delays possible later this week. Crush margins remain even as meal fades from the highs, along with outstanding biodiesel margins. Early planting in South America will be getting underway soon with conditions on the dry side going in but no major concerns expected for a while. Brazil and Argentina currencies remain historically cheap with the real falling back to the lows. U.S. and Brazil offers are near parity to China even with the tariffs. The second round of trade aid is being targeted for early December. Weekly Crop Progress is expected to show steady conditions and maturity above normal. The daily wire had 241,000 metric tons of soybeans sold to unknown. The weekly export inspections ran in line with recent weeks at 784,752 metric tons. On the November chart, support is fresh lows at $8.21 scored Wednesday and tested this morning, with the 10-day at $8.37 and the 20-day at $8.46 noted resistance levels. WHEAT Wheat trade is mixed at midday with trade mostly holding the gains from Friday so far. The U.S. still struggling to secure export business but should be positioned better soon with world tenders solidly higher last week. The U.S. dollar is at the bottom of the recent range. Russia is expected to catch some rain in the near term while they try to cut spring wheat and plant winter wheat with some snow in Siberia. Australia looks to have more mixed weather in the near term with longer-term dryness still an issue as we get closer to harvest there, and some frost in Western Australia. Matif milling wheat is firmer this morning as well. The weekly Crop Progress report should show winter wheat planting near average and spring wheat harvest nearly wrapped up. Weekly export inspections were in line with recent weeks at 406,004 metric tons. On the December KC chart, we have support at the lower Bollinger Band at $4.95 with resistance the 10-day at $5.19. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.