DTN Midday Grain Comments 10/23 11:22

DTN Midday Grain Comments 10/23 11:22 All Grains Lower at Midday Trade is lower across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 85 points. The interest rate products are higher. The dollar index is 60 points higher. Energies are lower with crude down 0.70. Livestock trade is sharply lower. Precious metals are mixed with gold up $1. CORN Corn trade is 2 to 3 cents lower at midday with harvest pressure and the stronger dollar. Intermonth spreads have firmed some this week indicating that harvest pressure may be fading as we get deeper into October. Wet weather is starting to slow harvest in the west but overall harvest pace remains ahead of the average pace. Ethanol board margins are better today with corn lower and ethanol remaining firm despite spillover pressure from unleaded. The USDA announced 130,000 metric tons of corn sold to unknown. On the nearby December chart support is at $3.72 which is the low reached early in the week, then the $3.60 1/2 early September low. The 50-day at $3.81 then the 20-day moving average at $3.85 is resistance levels to note nearby. SOYBEANS Soybean trade is 5 to 7 cents lower at midday with November trade finding light chart selling after dropping back below $9. Meal is $3 to $4 lower, and oil is 30 to 40 points lower. Rains should slow harvest, but with less than 20% of the crop left the market is not too concerned. Trade will continue to watch planting progress in South America, with better near term moisture expected. The USDA switched 236,000 metric tons of soybeans from unknown to China, and announced a further 208,000 metric tons sold to unknown. The export news this month has been good and the biggest fundamental reason keeping beans from slipping further. But market bears continue to argue that the comfortable global supplies will keep buyers away on bounces. On the November chart, support is at the $8.92 20-day with resistance at the $9.19 3/4 high reached last week. WHEAT Wheat trade is 3 to 4 cents lower at midday with early commercial buying giving way to further pressure from slow demand and the sharply stronger dollar. US origin wheat remains at a disadvantage on the world market with Black Sea origin winning most recent tenders, with little improvement in movement expected in the near term especially with the reversal in the dollar. Significant rains caught much of the western Plains yesterday. There continues to be some world weather questions but not major concerns yet. On the Kansas City December chart futures are below all major moving averages with the 10-day resistance at $4.87 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.