DTN Midday Grain Comments 10/20 11:24

DTN Midday Grain Comments 10/20 11:24 Grains Close to Flat at Midday Row crops are slightly higher at midday, wheat is mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the DOW futures down 5 points. The interest rate products are higher. The dollar index is 10 points lower. Energies are narrowly mixed. Livestock trade is higher. Precious metals are mixed with gold up $2. CORN Corn trade is flat to 2 cents higher at midday with trade finding some light buying so far. Ethanol margins remain under pressure from the pressure in the crude and unleaded gasoline trade for both producer and blender, with ethanol futures edging higher this morning. Overall useage should hold up with cheaper combined prices. The weekly progress report put the corn harvest at 59% complete versus the 54% average. Conditions were unchanged at 68% good to excellent. With open weather until later in the week, good progress should continue to be made especially with soybeans winding down. On the nearby December chart support is at $3.72 which is the daily low reached overnight, then the $3.60 1/2 early September low. The 50-day at $3.81 then the 20-day moving average at $3.85 are resistance levels to note. SOYBEANS Soybean trade is 1 to 3 cents higher at midday with trade finding commercial buying again. Meal is flat to $1 higher and oil is flat to 10 points higher. South American production difficulty is the next big chance for a change with Dec-Mar their main growing months, with expected large carryouts hanging over the market. There are rains forecasted for some of their growing areas in the near term. Harvest progress was noted at 77% versus the 68% average. We could be nearly 90% on the report next Monday. The USDA announced 132,000 metric tons of soybeans sold to China. On the November chart support is at the $8.89 50-day then the $8.86 20-day with resistance at the $9.19 3/4 high reached last week. WHEAT Wheat trade is narrowly mixed at midday with light short covering driven by the weaker dollar and firmer row crop trade, while demand continues to weigh on the market. Expected better rains for the western Plains will limit upside as well. Also U.S.-origin wheat remains at a disadvantage on the world market with Black Sea origin winning most recent tenders, although U.S.-origin has been offered cheaper than Canadian and Australian origin. There continues to be weather questions in Australia, and planting concerns in Russia, but the market is not reacting to those at this juncture. The winter wheat planting progress was listed at 76%, 1 percentage point slower than the average. On the Kansas City December chart futures are below all major moving averages with the 50-day resistance at $4.93 and the lowest major moving average. Support is at the $4.65 contract low. 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.