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DTN Midday Grain Comments     09/21 11:34

   Wheat Grain Trade Higher at Midday

   Trade is narrowly mixed midday with a typically slow session.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are lower; the Dow futures are down 35. The 
interest rate products are higher. The dollar index is 28 lower. Energies are 
mixed with crude up 0.10. Livestock trade is mostly lower. Precious metals are 
lower with gold down $21.


   Corn trade is right around unchanged at midday with trade staying near the 
levels seen all week; the trading range has only been 2 1/2 cents. News will be 
light until next Friday when the quarterly grain stocks report will be 
released, so harvest results are what the market should be talking about the 
rest of the week and next week. Both better than expected and worse than 
expected have been in market discussions. Ethanol margins are near unchanged 
this morning with corn and ethanol both near unchanged. The weekly export sales 
were on the low end of the range of expectations at 527,900 metric tons with 
sales for new marketing year lagging behind the 2016 pace. On the December 
chart support is at the $3.44 1/4 August low with resistance at $3.53, where we 
find the 10-day and 20-day moving averages.


   Soybean trade is flat to a penny higher at midday with trade staying firmly 
range bound. Meal is $1 to $2 higher and oil is 45 to 55 points lower. Trade is 
watching demand and harvest results closely as China secured another 132,000 
metric tons. The weekly export sales were very strong at 2.34 million metric 
tons, 172,700 metric tons of old and new crop meal, and 8,500 of old and new 
crop oil. November futures keep avoiding sustained pressure following the 
negative USDA report last week, but we find selling interest in the $9.75-$9.80 
area. Yield numbers as harvest progresses should give us some direction the 
rest of the week before rains slow things into next week. The export news is 
expected to remain a positive factor for futures. On the November chart support 
is at the 10-day at $9.64, then the 20-day at $9.57. Resistance is at the $9.79 


   Wheat trade is flat to 5 cents higher at midday with spring wheat showing 
the mostly strength with trade testing the higher end of the recent range yet 
again. 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 US to compete on the world market. Egypt is starting to look 
around for cargos again with the advantage remaining with the Black Sea. The 
weekly export sales remained soft at 307,200 metric tons. On the December 
Kansas City contract 20-day at $4.39 is support the 50-day at 4.69 is 

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


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