DTN Midday Grain Comments 10/16 11:33

DTN Midday Grain Comments 10/16 11:33 Wheat Leads Grains Lower at Midday Corn makes new lows for the week, wheat seeing long liquidation pressure at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 30 points. The interest rate products are higher. The dollar index is 30 points higher. Energies are mixed with crude up $0.30. Livestock trade is mixed. Precious metals are lower with gold up $7. CORN Corn trade is 2 lower at midday taking us to a one-month low. December ethanol moved to 21 cents above unleaded; unleaded has more value in regard to miles per gallon, so blending and ethanol usage economics work against higher prices. The lower corn trade appears to be with an expectation that margins will get worse due to limited ethanol demand, along with harvest pressure. The weekly export sales remained mediocre coming in at 598,400 metric tons. Fridays tend to be trend days, so lower action this afternoon should not be a surprise. This is also a harvest weekend with harvest pressure likely this afternoon as well. On the nearby December chart nearby support was the late-September low of $3.75 which we are now below, the $3.60 1/2 September low is now support. The 50-day at $3.81 then the 20-day moving average at $3.85 is resistance level to note. Trade closed below all major moving averages Wednesday and Thursday giving us the negative chart picture we have at this juncture. SOYBEANS Soybean trade is 2 to 3 cents lower at midday with trade seeing the resumption of selling despite strong exports. Meal is $2 to $3 lower and oil is narrowly mixed. Harvest should continue to move along quickly with open weather which should allow the rest of harvest pressure to pass. Seasonally once we are past the 50% level of harvest the market can confirm a low. The weekly sales were strong at 1.48 million metric tons of beans, 225,800 of meal, and 53,200 of oil. The USDA announced 270,000 metric tons of soybeans sold to unknown. Opposite of corn, the chart picture is positive for beans although the strength cooled off late yesterday into today. On the November chart the next level of resistance is the 100-day at $9.30 then the 200-day at $9.45, Support is at the late September high of $9.02 that we moved through Tuesday, and tested this morning. WHEAT Wheat trade is 9 to 13 cents lower this morning across the three contracts with support crumbling again during the day session. The dollar is a bit firmer this morning but remains near the lower end of the range. U.S. origin remains at a disadvantage on the world market, with Black Sea origin winning the Egyptian tender yesterday, although prices have advanced recently. There continues to be weather questions in Australia and Russia with plenty of times for both crops to recover, with ample world supplies still weighing on the market. Export sales were better than expected at 460,400 metric tons. On the Kansas City December chart, trade has fallen through the 50-day support at $4.96, with the $4.74 lows as support from now. 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.