The U.S. stock market indices are mixed with the Dow up 17. The interest rate products are mostly lower. The dollar index is 15 lower. Energies are higher with crude up $0.90. Livestock trade is mixed. Precious metals are mixed with gold up $1.
Corn trade is 1 to 3 cents higher at midday with trade staying squarely in the middle of the range for the week. Harvest will continue to expand in coming day, which will likely pressure basis. But if futures can maintain support, trade will become more confident on the Aug. 31 low. Ethanol futures are slightly lower this morning, narrowing margins a bit. The export sales were good at 1.05 million metric tons. The December chart support is at the $3.44 1/4 low. The 20-day at $3.56 is noted chart resistance that held in recent days. The 10-day is in the same ball park at $3.55, with support remaining at the $3.44 August low. The nearby charts are more negative after the failure to break the 20-day and hold above the 10-day with trade failing after it tested the 20-day this morning.
Soybean trade is 13 to 17 cents higher at midday with trade finding some light buying again as demand works to carry the market as harvest should continue to expand further. Meal is $7 to $8 higher, and oil is narrowly mixed. Warm and dry conditions in the west will move harvest along, with yields to be watched closely after USDA indicated the trend remains higher. The weekly export sales were strong at 1.61 million metric tons, and the daily wire is expected to remain active with China securing another 198,000 metric tons. Planting progress will be watched for Brazil in coming days as the season is off to an early dry start. On the November chart, support is the 20-day moving average at $9.49 with the 200-day at $9.81 major resistance.
Wheat trade is mixed at midday with the winter wheats continuing to lead trade with KC reaching a new high for the move before setting back. Basis has started to move higher for the high-protein wheat again, indicating that quality remains a premium. Exports remained soft at 316,700 metric tons. 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, although U.S. origin continues to work to some destinations. On the December KC contract, support is the 10-day at $4.42 with resistance the recent high at $4.51 3/4, with the 50-day at 4.85 above that.
David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor.
He can be reached at email@example.com
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