DTN Midday Grain Comments 10/12 11:42

DTN Midday Grain Comments 10/12 11:42 Mixed Trade in Grains at Midday Grain trade is mixed in slow midday action; soybeans are higher with corn lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are mixed with the Dow futures up 30 points. The interest rate products are higher. The dollar index is unchanged. Energies are mostly lower with crude down $1.00. Livestock trade is sharply higher. Precious metals are higher with gold up $5. CORN Corn trade is 1 to 2 cents lower in quiet action at midday. The market is still digesting the USDA report from Friday giving us the quiet trade it appears. As a review, the USDA production number came in at 13.555 billion versus the average trade guess of 13.505 billion, down 30 million from the September report. Ethanol margins are mostly sideways with ethanol values down slightly this morning. The yield was increased to 168 versus 167.5, but harvested acreage dropped by 400,000 acres. The carryover came in at 1.561 billion versus 1.535 billion expected and the 1.592 September number. The world new crop carryover came in at 187.8 versus 189 expected and 189.7 on the September report. The weekly export inspections are expected to be in the range of 400,000 to 800,000 metric tons; the reports are delayed until tomorrow due to the holiday. The weekly progress numbers should show harvest progress pushing past 40% complete when released tomorrow. On the nearby December chart nearby support is 50% retracement of the recent move at $3.80, with the 20-day moving average at $3.87 as resistance above that. SOYBEANS Soybean trade is 5 to 9 cents higher at midday with trade working to build on the support shown on Friday. Meal is $2 to $3 higher and oil is 15 to 25 points higher. On the report the yield was in line with expectations at 47.2 bpa, with the crop size at 3.888 billion bushels, down from 3.935 on the September report. The carryover was only down 25 million at 425 million bushels due to a drop in usage along with the lower production number. The global carryover came in at 85.1 million metric ton versus 85 million on the last report. So overall the USDA numbers were fairly neutral with a trend of higher yields still in play. Meaning the November yield may come up another 0.1 or 0.2 bushels per acre. The weekly export inspections are expected to be in the range of 1.0 to 1.5 million metric tons. The weekly crop progress report should show harvest past 55% complete when released tomorrow. On the November chart the contract low at $8.53 1/4 is long-term support with the 20-day moving average at $8.83 nearby support. Upside resistance is at the $8.99 50-day then the $9.02 recent high. WHEAT Wheat trade is narrowly mixed at midday with fairly quiet trade. The dollar has firmed back from early weakness limiting buying interest this morning. The domestic carryover only slipped to 861 million versus 875 million on the report last month. Expectations were for a number around 40 million bushels lower. The global carryover rose once again to a very large 228.5 million metric ton keeping the bearish fundamental supply side back drop to the wheat market. The planting progress should continue to run in line with average when released tomorrow. On the Kansas City December chart support is at the 20-day moving average at $4.97. Resistance is at the $5.20 seven-week high reached Wednesday then the $5.32 100-day moving average. 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.