DTN Midday Grain Comments 10/26 11:27

DTN Midday Grain Comments 10/26 11:27 Corn, Wheat Higher at Midday Wheat is sharply higher at midday with row crops mixed, rebalancing noted. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are mixed with the Dow futures down 26 points. The interest rate products are lower. The dollar index is 35 points lower. Energies are lower with crude down 0.45. Livestock trade is mostly lower. Precious metals are higher with gold up $4. CORN Corn trade is 3 to 4 cents higher at midday with spillover strength from the wheat trade and fading harvest pressure. Ethanol margins look stable to start the week with energy moving sideways. Blenders still looking at a negative picture using more ethanol with ethanol futures edging higher again this morning, but ethanol bulls are counting on good overall gasoline usage. Spread trade is slightly firmer this morning again, with December/March carry down to 9 cents. Harvest progress should be over 70% complete, and export inspections remained soft at 413,304 metric tons. On the December chart support is at $3.72 which is the low reached last week, then the $3.60 1/2 early September low. The 20-day moving average at $3.84 is chart resistance then the 100-day at #3.89. SOYBEANS Soybean trade is 7 to 11 cents lower at midday with the front-month spreads continuing to firm overnight while general selling on world oilseed weakness dominates. November beans are 3 cents over January. Meal is $3 to $4 lower, and oil is 30 to 40 points lower. South America should continue to make planting progress, while U.S. harvest progress should be around 90% complete. Rain in central Brazil was noted for strength along with some selling beans against long wheat and corn spreading. The weekly export inspections were huge at 3.671 million metric tons with an additional 120,000 metric ton sale announced this morning. But this was not enough to bring the market back from the double-digit losses. On the November chart support is at the $8.85 50-day which we tested this morning and it held. Resistance is at $9, then the $9.19 3/4 high reached on the 14th. WHEAT Wheat trade is 12 to 17 cents higher at midday with broad-based short covering developing during the day session after we moved above the 10-day moving average. The dollar remains near the upper side of the recent range likely limiting extended buying enthusiasm. The western plains look dryer this week, with more rains needed to establish a good stand with excessive rains in some areas, while questions linger in Australia and Russia. The weekly export inspections remained soft at 317,079 metric tons. Planting progress for winter wheat should be nearing completion, with generally good conditions, 50-60% good to excellent, expected on the first report. On the Kansas City December chart futures have moved above the lowest moving average, the 10-day at $4.85 which is now first support then the $4.65 contract low. Resistance is at the $4.95 20-day then the $5.21 early October high. 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.