DTN Midday Grain Comments 10/04 11:23

DTN Midday Grain Comments 10/04 11:23 Corn, Wheat Mixed at Midday Beans are down nearly a dime at midday giving back some of the solid Monday gains. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow down 10 points. The interest rate products are higher. The dollar index is 70 points higher. Energies are mixed with crude up 0.12. Livestock trade is higher on cattle, mixed on hogs. Precious metals are lower with gold down $28.00. CORN Corn trade is fractionally mixed at midday, which market bulls see as positive following the rally to new two-month highs yesterday. Ethanol margins are under a bit of pressure with the firmer corn trade and sideways energy trade but remain positive. The weather forecast has rain in the center of the belt, slowing harvest in some areas at midweek. Basis should see more harvest pressure as more bushels come to town. Harvest progress was listed at 24%, 3% behind average, while maturity was 86%, 7% above average. Corn ratings were down 1% at 73% which is normal due to maturity. On the December contract, chart support is the $3.44 area that was the August/September high that we moved above yesterday, with the 10, 20, and 50-day clustered around $3.36 below that. Resistance is at $3.50 then the 100-day up at $3.69. SOYBEANS Soybean trade is 6 to 8 cents lower at midday due to noted harvest pressure and slower commercial demand with China on holiday this week. Plus the crop ratings were increased yesterday on the weekly report. Meal is flat to $1 higher and oil is 30 to 40 points lower. The progress report had harvest progress at 26%, 1 percentage point behind normal, and dropping leaves was 83%, 4% ahead of normal. Crop ratings improved by 1 percentage point to 74% good to excellent which does not usually occur as we enter October. This is reflective of mostly good or better than expected yield results so far. Basis has moved to harvest levels, but strong export movement should limit further downside for basis, especially if harvest slows with the rains. South American should make additional progress planting this week with better moisture in some areas expected. On the chart, soybeans finished just below the 50-day and 200-day moving averages at $9.73, with the 10-day and 20-day at $9.62 as support below that which we tested this morning, then down at the $9.34 6-month low printed last week. WHEAT Wheat trade is mixed overnight with the Minneapolis contract continuing to rebuild the premium to the winter wheat contracts as it is up 3 to 5 cents this morning. The dollar has popped back up to the upper end of the range this morning, on weakness in the British pound, which will limit buying enthusiasm. Any positive fresh export news will limit downside, but we need consistent news to get some demand buying going in the bigger picture, especially is spread pressure persists. Winter wheat planting progress was 43% planted, 2% behind average with 20% emerged vs. 17% on average. On the Kansas City December chart support is now the $4.03 low from this morning with $3.95 below that; resistance is at $4.16 which is the 10-day and 20-day moving average. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at dfiala@futuresone.com Follow Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.