DTN Midday Grain Comments 10/05 11:30

DTN Midday Grain Comments 10/05 11:30 Grains Mixed at Midday Wheat trade has the excitement at midday with some double-digit increases. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow up 115 points. The interest rate products are higher. The dollar index is narrowly mixed. Energies are higher with crude up 1.12. Livestock trade is mixed on cattle, and sharply lower on cattle. Precious metals are mixed with gold flat. CORN Corn trade is fractionally mixed with noted spillover support from wheat helping bring corn back from 3 cent lower trade overnight. Corn is holding the positive chart position that started Friday when we moved above the 20-day moving average late in the session. The weekly ethanol report showed production down .91%, stocks down 1.95%, and gasoline demand up 5.7%. This has ethanol futures up nearly 3 cents at midday. Rain is slowing harvest in some areas which has kept some sellers away on strength this week. Basis should see more harvest pressure as more bushels come to town. On the December contract chart support is at $3.44 which was the August/September high that we moved above on Monday, then the 20-day at $3.37. Resistance is at $3.50 then the 100-day moving average up at $3.69. SOYBEANS Soybean trade is 2 cents lower at midday with trade bouncing back from 13 cent lower trade earlier this morning. The front month spreads are a bit weaker as more bushels come in. Meal is $1 higher and oil is 15 points lower. 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, with some dry pockets remaining. Daily exports are expected to be quiet with China on Holiday. 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 7 to 11 cents higher at midday with the winter wheat contracts gaining versus Minneapolis. But Minneapolis did put in new highs for the move before setting back at midday. The dollar has popped back up to the upper end of the range this morning, but follow through momentum appears limited. Egypt has secured four cargoes of wheat from Russia, covering their short term needs. Jordan has been sniffing around the market as well. The western reaches of the winter wheat belt in the US will need better rains soon to support emergence. On the Kansas City December chart support is now the $4.03 low from this Monday 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.