DTN Midday Grain Comments 09/14 10:52

DTN Midday Grain Comments 09/14 10:52 Corn, Soybean Futures Lower at Midday; Wheat Steady-Higher Corn futures are 9 to 10 cents lower at midday Wednesday; soybean futures are 16 to 18 cents lower; wheat futures are flat to 6 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 9 to 10 cents lower at midday Wednesday; soybean futures are 16 to 18 cents lower; wheat futures are flat to 6 cents higher. The U.S. stock market is firmer with the DOW up 75 points. The U.S. Dollar Index is 40 points lower. Interest rate products are firmer. Energies are firmer with crude up 1.90. Livestock trade is mixed. Precious metals are mixed with gold $3.00 lower. CORN: Corn futures are 9 to 10 cents lower at midday with trade fading back off the upper end of the range with harvest pressure expected to build and little fresh bullish news from elsewhere at the moment as trade eases back from overbought conditions. Short-term forecasts have the center of the belt drier with warmer temps to keep harvest expansion moving along. The export wire will be watched for business as the extent of weekly action is expected to be caught up Thursday with nothing hitting the wire Wednesday. 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, with the weekly report showing production down 26,000 barrels per day (bpd) and stocks 295,000 barrels lower. 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 some areas starting to show more strength already with the rail strike remaining a wild card. On the December chart, trade remains below the Upper Bollinger band at $7.10 as the next level up, with the 20-day moving average well below the market at $6.61. SOYBEANS: Soybean futures are 16 to 18 cents lower at midday with trade continuing to fade from the push seen post-report with harvest pressure and demand concerns continuing to limit upside. Meal is $1.50 to $2.50 higher, and oil is 125 to 135 points lower, keeping crush margins sideways. South America is moving toward planting preparation with late demand picking up ahead of the U.S. export window, especially with the rail strike concerns. Basis will continue to shift toward harvest footing with trade watching to see how quickly export shipments pick up into the end of the month or if they can with rail issues. The daily wire remains quiet ahead of the catch-up numbers expected Thursday. On the November soybean chart, trade has the Upper Bollinger Band at $14.92 as resistance with the $15.00 area the next level up, and the 20-day moving average well below the market at $14.29. WHEAT: Wheat futures are flat to 6 cents higher with trade still consolidating the upper end of the range with spillover pressure easing during the day session as KC wheat pushed into resistance early on. Spring wheat harvest is on the home stretch with winter wheat planting to accelerate in the next week. The dollar is back near the recent highs with interest rate outlooks remaining in focus with MATIF prices touching the upper end of the range as well before fading slightly. 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 at $8.88, which we bounced from last week, and the Upper Bollinger band at $9.49 as resistance which we tested this morning. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.