DTN Midday Grain Comments 09/04 11:36

DTN Midday Grain Comments 09/04 11:36 Mixed Trade in Grains at Midday Wheat is higher at midday, while row crops struggle. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow futures down 260 points. The interest rate products are mostly lower. The dollar index is 5 points higher. Energies are lower with crude down $0.60. Livestock trade is mixed with cattle lower and hogs higher. Precious metals are lower with gold down $5. CORN Corn trade is narrowly mixed in quiet midday trade with trade looking to coast into the Labor Day holiday weekend. Warmer weather is expected to continue into the weekend, which should move maturity along with harvest expected to become more widespread in the next couple of weeks. Ethanol margins have improved with ethanol futures gaining this morning despite the softer crude trade this morning. The USDA monthly report is due out next Friday which will be the next major news trade this week should be active with some direction from the outside markets. The trend is down but we found support 3 cents above the contract low which may illustrate there is limited selling interest at contract lows ahead of the report. On the December chart support is at the low from this morning at $3.60 and then the contract low at $3.57. Resistance is at the $3.75 20-day moving average then the $3.86 recent high. SOYBEANS Soybean trade is 2 to 4 cents lower at midday with early strength giving way during the day session again, with meal $0.50 to $1.50 lower, and oil 20 to 30 points lower. Beans have carved out a range in the $8.60 to $8.90 area with trade hanging in the middle to lower end of the range. The weather is still important to determine how the crop will finish out but few worries are around with dry pockets as we head towards the finish with the warmer weather starting push maturity along quicker and some rains expected for the western belt. On the November soybean chart, support is at the contract low of $8.55 is support with resistance at the 10-day at $8.76, and the 20-day at $9.00. WHEAT Wheat trade is flat to 5 cents higher across the three exchanges at midday with Kansas City trade leading as it reestablishes a premium to Chicago values. Weak fundamentals and chart pressure will continue to limit upside, some profit taking vs. shorts is probably needed in the near term, but trade does not seem interested in a sustained rally for profit taking. StatsCanada has slightly higher wheat stocks than expected. Spring wheat harvest will be wrapping up soon which should take some of the pressure off the Minneapolis contract. Chart resistance for the December Kansas City contract is at the $4.83 10-day moving average. Support is at the $4.65 fresh contract low reached this morning. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.