DTN Midday Grain Comments 09/18 11:20
Grains Mixed at Midday
Mixed midday trade is seen at midday to start out the week.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher with the Dow up 80. The interest
rate products are lower. The dollar index is 10 higher. Energies are mostly
lower with crude down 0.70. Livestock trade is mixed. Precious metals are mixed
with gold down $14.40.
Corn trade is 2 to 3 cents lower at midday with two-sided overnight trade
giving way. The weekly export inspections were at 676,819 metric tons which was
not large enough to bring in buyers. Ethanol margins are stable to start the
week with corn lower and ethanol flat to higher. The weekly crop progress
should show steady to unchanged conditions, with maturity and harvest lagging
slightly. On the December chart support is at the $3.44 1/4 low. The 10-day and
20-day at $3.55 1/2 are nearby resistance then the $3.62 three-week high.
Soybean trade is 4 to 5 cents higher at midday with strong demand helping to
lift trade again after early weakness. Meal is $3 to $4 higher and bean oil is
15 to 25 points lower. South America looks to remain mostly dry in the near
term with major planting progress just around the corner. The weekly crop
progress should show mostly steady conditions with maturity and harvest
progress near normal. The weekly export inspections were off slightly at
928,575 metric tons, with 126,000 metric tons sold to unknown, and 261,000
metric tons to China on the daily wire. On the November chart support is at the
10-day moving average at $9.65, then the 20-day at $9.53, with the 200-day at
$9.79 3/4 major resistance.
Wheat trade is 1 to 6 cents lower at midday with trade remaining in the
upper end of the recent range for winter wheat, with spring wheat struggling to
start the week. 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, with the dollar trying
to rally again this morning but remaining at the lower end of the range. Winter
wheat planting should be in line with the average pace, and spring wheat
harvest should be complete. Weekly export inspections followed the recent weeks
at 464,375 of wheat. On the December Kansas City contract support is the 20-day
at $4.37 with resistance at the recent high at $4.51 3/4, with the 50-day at
4.79 above that.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Advisor.
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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