DTN Midday Grain Comments 10/30 11:06

DTN Midday Grain Comments 10/30 11:06 Grains Higher at Midday Trade is higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow futures down 15 points. The interest rate products are mostly lower. The dollar index is 65 points lower. Energies are mixed with crude down 0.10. Livestock trade is mixed with hogs higher. Precious metals are lower with gold down $5.00. CORN Corn trade is 2 to 4 cents higher at midday in quiet trade with trade working into resistance levels this morning. The spread trade has been steady to firm this morning, and basis has begun to firm in some markets. Trade looks to stay comfortably in the recent $3.70-to-$4.00 range as we head into November. Overall, the market remains comfortably supplied, which will limit rallies. Ethanol margins remain fairly sideways today with futures bumping slightly higher this morning. On the December chart, support is at the 10-day moving average at $3.78 then the $3.72 October low. Resistance is at the $3.82 20-day then the 100-day at $3.89. SOYBEANS Soybean trade is 4 to 8 cents higher with firmer trade developing during the day session as the November contract heads into delivery. Meal is $2 to $3 higher and oil is 10 to 20 points higher. Better rains are forecast for Brazil over the next seven days, which has limited upside this week. However, the extended forecast hints at drier weather moving into the middle of November. Basis has firmed slightly in some areas on soybeans, and may improve more with harvest near complete. Spread trade has softened into midweek, with the front months moving back to carry with the November contract going into delivery. USDA announced 120,000 metric tons of soybeans sold to China. On the November chart, support is at the $8.71 three-week low with major support down at the $8.53 contract low. First resistance is at the $8.85 50-day, then $9, then the $9.19 3/4 high reached on the 14th. WHEAT Wheat trade is 3 to 8 cents higher at midday across the three contracts with trade trying to build on the better action seen Thursday. Cold weather concerns are around in Russia and South America, while Australia is struggling with heavy rains during early harvest causing lodging. Until that turns into bigger U.S. export business, fundamental bears will continue to point to limited export demand and large domestic and world carryovers. USDA reduced projections for Australian production and the market will watch that number on the USDA report on Tuesday, Nov. 10. Rains look to be mixed for the HRW belt with the east seeing better coverage with emergence expected to remain average on the next report. On the KC December chart futures have moved back above 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 $4.92 20-day, which we are challenging at midday 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.