DTN Midday Grain Comments 10/28 14:39

DTN Midday Grain Comments 10/28 14:39 All Grains Lower at Midday Trade is slow and 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 100 points. The interest rate products are higher. The U.S. dollar index is 30 points lower. Energies are higher with crude up 2.50. Livestock trade is mixed with cattle higher. Precious metals are higher with gold up $15.00. CORN Corn trade is 3 to 4 cents lower at midday with trade grinding lower in quiet trade; spillover pressure is noted from soybeans and wheat. The weekly ethanol production report showed production 0.74% lower, and stocks 3.17% lower. Gasoline demand was 2% higher, which has helped boost blender margins this morning with unleaded up a nickel, and ethanol up a penny. China is investigating dumping allegations in regards to DDGs, which has suspended imports for the moment. Rains might slow harvest a bit through midweek, but progress is expected to remain well ahead of normal. On the December chart, support is at the 10-day moving average at $3.78, but has now edged below that at midday. The recent low at $3.72 will be the next level of support. We are below the 20-day moving average at $3.83, with the next level of resistance the 100-day at $3.89. SOYBEANS Soybean trade is 5 to 8 cents lower at midday with slowing commercial demand turning the trade defensive with November/January trade returning to a slight carry. Meal is $3 to $4 lower, and oil is 20 to 30 points higher. The streak of export sales announcements was broken Tuesday, with nothing announced Wednesday. Better rains are forecasted for Brazil over the next seven days. Basis has firmed slightly in some areas on soybeans, and may improve more with harvest near complete. On the November chart, support is at the $8.85 50-day, but beans chopped around this level in early trade. Resistance is at $9, then the $9.19 3/4 high reached on the 14th. WHEAT Wheat trade is 2 to 6 cents lower across the three exchanges with the profit taking vs. shorts looking like a one day event for now with demand concerns continuing to weigh on the market. The dollar remains in the upper end of the range but has softened to start the week. Cold weather concerns are around in Russia and South America, while Australia remains hot and dry. The USDA reduced projections for Australian harvest slightly. Russia continues to win export business, picking up another tender to Syria. Rains look to be mixed for the HRW belt with the East seeing better coverage. On the Kansas City December chart, futures have moved back to the lowest moving average, the 10-day at $4.82, 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.