DTN Midday Grain Comments     09/20 10:54

   Grains Mixed at Midday

   Spring wheat leads mixed trade at midday.

By David Fiala
DTN Contributing Analyst

 General Comments

   

   

   The U.S. stock market is mixed with the Dow 40 higher. The dollar index is 
35 points higher. Interest rate products are weaker. Energies are mixed with 
crude up 0.50. Livestock trade is mixed to mostly lower. Precious metals are 
firmer with gold up $4.

   CORN

   Corn is flat to 2 cents higher with trade still struggling to extend the 
upper end of the range but finding light buying during the day session. Weather 
remains a short-term non-issue with warm temps and some wet weather in areas to 
move along late crop development and maturity. Corn basis is expected to 
continue to see pressure with harvest underway in more areas, and more coming 
soon. Ethanol futures are slightly lower with improved margins holding on, but 
unleaded has eased lower this a.m. The export wire has remained quiet this week 
with the rally. On the December contract support is at the 20-day at 3.65 with 
the upper Bollinger Band above trade at 3.77. 

   SOYBEANS

   Soybean trade is 3 to 5 cents lower with trade staying within the recent 
range with little fresh news. Meal is narrowly mixed and oil is 30 to 40 points 
lower. Crush margins remain good, but the bull argument needs a positive export 
story with last week's sales to China concluded. Economically U.S. export 
competitiveness is improving which may be just as important as trade 
negotiations to get some business done, although the real is testing the lows 
again today. Bean basis remains flat in the interior. South American currencies 
remain weak as planting season draws closer with dry weather to start, 
potentially delaying things early on. On the November chart we near support at 
the 100-day at $8.86 and the upper Bollinger Band at $9.05, and the 200-day at 
9.13 as resistance. 

   WHEAT

   Wheat trade is 1 cent lower to a dime higher with Minneapolis trade leading 
on the quality concerns. The Kansas City/Chicago spread is 77 cents, down 7 
cents from the high this week. The corn/HRW spread is hanging around the 35-40 
cent area. So Kansas City wheat is competitive on the world market but we need 
to see the business and more buyers to move the board out away from our lows 
with feed competitiveness still in place for the southern plains. Winter wheat 
planting should expand more this week, but the market is not providing 
incentives to plant. The December Kansas City chart support is at the 20-day at 
$4.00 1/2, with resistance at the upper Bollinger Band at 4.15, which we are 
just below.

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser. 
He can be reached at dfiala@futuresone.com 
Follow him on Twitter @davidfiala


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