DTN Midday Grain Comments 09/06 10:57

DTN Midday Grain Comments 09/06 10:57 Corn Futures Higher at Midday; Soybeans, Wheat Lower Corn futures are 2 to 3 cents higher at midday Tuesday; soybean futures are 22 to 24 cents lower; wheat futures are flat to 2 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents higher at midday Tuesday; soybean futures are 22 to 24 cents lower; wheat futures are flat to 2 cents lower. The U.S. stock market is mixed with the DOW up 45 points. The U.S. Dollar Index is 70 points higher. Interest rate products are weaker. Energies are weaker with crude down .50. Livestock trade is firmer. Precious metals are mixed with gold $10.50 lower. CORN: Corn futures are 2 to 3 cents higher at midday with light, two-sided action to start the week with little fresh news and early harvest to continue to expand. Short-term forecasts have the center of the Corn Belt drier with warmer temps, setting the stage for early harvest expansion to accelerate into midmonth. The weekly USDA Crop Progress and Conditions report is likely to show steady conditions Tuesday with maturity even with the five-year average, as northern areas keep denting just behind average. Weekly export inspections softened a bit at 518,373 metric tons (mt). The export wire will be watched for business as the extent of weekly action will remain unclear through Sept. 15 with nothing hitting the daily wire recently. Ethanol margins will continue to see pressure from corn, firm natural gas, and softer unleaded futures seasonally, but harvest basis will soon provide support in many areas to boost profitability. Basis will be watched to see how quickly we go to harvest footing and how aggressively the west will bid for corn in the deficit areas into early harvest with little change to start the week. On the December chart, trade is remains below the Upper Bollinger band at $6.90 with $7.00 the next level up, with the 20-day moving average well below the market at $6.43. SOYBEANS: Soybean futures are 22 to 24 cents lower to start the week with November action continuing to work just below $14.00 with little fresh news as we wait for harvest to expand and export business to shift further to the U.S. with Argentina currency adjustments aiding farmer selling short term. Meal is $10.50 to $11.50 lower and oil was 250 to 270 points lower. South America is moving towards planting preparation as the export advantage will shift to the U.S. over the next few weeks with harvest likely to expand quickly with the forecast pushing maturity short term. Basis will continue to shift toward harvest footing with trade watching to see how quickly export shipments pick up. Weekly crop progress is expected to show steady conditions with maturity close to the five-year average with export inspections soft at 495,845 mt. On the November soybean chart resistance is the 20-day moving average at $14.25, which we faded below at midweek, with the Lower Bollinger Band at $13.77, below the market. WHEAT: Wheat futures are flat to 2 cents lower at midday with early gains giving way to thin, two-sided action to start the week as trade still works to consolidate the upper end of the range. Export business is starting to pick up world-wide again, along with Northern Hemisphere mostly dry as planting gets underway. Plains weather looks dry and warm short term with moisture needed soon for emergence, while spring wheat harvest will continue to move along. The dollar is testing the highs with interest rate outlooks remaining in focus with MATIF prices remaining mostly rangebound. Fertilizer production in Europe will continue to be watched as well with some plants offline again. The KC December chart has support at the 20-day moving average of $8.76, which we are testing at midday, with the lower Bollinger Band at $8.30 as further support and the Upper Bollinger band at $9.21 as resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.