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DTN Midday Grain Comments     09/17 11:42

   Light Trade in Grains at Midday

   Grain trade is mostly lower at midday in slow action.

By David Fiala
DTN Contributing Analyst

General Comments

   The U.S. stock market indices are higher with the Dow up 10. The interest 
rate products are lower. The dollar index is 2 higher. Energies are mixed with 
crude $0.50. Livestock trade is mostly higher. Precious metals are mixed with 
gold down $0.50. 


   Corn trade is 3 cents lower in quiet action at midday; the range has been a 
nickel. Outside markets are slightly negative with the dollar firming ahead of 
Federal Reserve comments today. The weekly ethanol production report showed a 
small production increase of 4,000 barrels and stocks were 800,000 barrels 
higher. This has ethanol futures down 3 to 7 cents a gallon at midday, which is 
shrinking margins. Corn basis has started to weaken a bit more in front of the 
impending record harvest with no major weather issues on the horizon. On the 
December chart support is at the $3.35 3/4 lower with resistance at the 10-day 
moving average at $3.44.


   Soybean trade is 1 to 3 cents lower in quiet trade, with November trade 
squarely in the middle of the recent range. Meal is flat to $1 lower with oil 
20 to 30 points higher. Soybean basis has continued to fade with harvest about 
to pick up steam. Spread trade has been fairly soft on soybeans, which could 
help trigger another round of selling. The USDA announced 620,000 metric tons 
of sales to China. Notable November soybean chart support is at the new 
contract low printed last Thursday (USDA report day) at $9.69 with resistance 
at $9.99, where we find the 10-day moving average.   


   Wheat trade is mixed at midday with trade seeing choppy action in light 
trade. The dollar has backed away from the recent highs a bit, but is holding 
at levels that keep the U.S. fairly uncompetitive in the export market, as 
shown by Egypt buying three cargos from France yesterday. The Southern Plains 
continue to battle ongoing drought, although improved this past month, it can 
still hinder early planting and development of wheat. The potential for heavy 
rain the next few days across the Southern Plains will need to be watched. 
Support on the December Kansas City contract is $5.79, the low from this 
morning, with first resistance at $6.06, where we find the 10-day moving 

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered Trading Adviser. 

   David Fiala can be reached at 

   Follow David Fiala on Twitter @davidfiala


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