DTN Midday Grain Comments 10/06 11:08

DTN Midday Grain Comments 10/06 11:08 Grains Mixed at Midday Trade is lower across the board at midday with harvest pressure and a weak commodity environment. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 80 points. The interest rate products are higher. The dollar index is 44 points higher at midday. Energies are higher with crude up 0.45. Livestock trade is mostly lower. Precious metals are lower with gold down $12.40. CORN Corn trade is 5 to 7 cents lower with selling picking up during the day session along with spillover weakness. Corn is holding the positive chart position that started Friday when we moved above the 20-day moving average and the two month high taken out on Monday, but is back below the old highs taken out earlier in the week. Ethanol margins are expected to remain steady with the energy complex moving higher. Rain is slowing harvest in some areas which has kept some sellers away on strength this week, but the forecast looks more open after today. Basis should see more harvest pressure as more bushels come to town. Weekly export sales were strong at 2.06 million metric tons. On the December contract chart support is at $3.44 which was the August/September high that we moved above on Monday which we are below at midday, 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 4 to 7 cents lower at midday with trade testing the $9.50 area again overnight with harvest pressure and slower demand through midweek, although the USDA announced 258,000 metric tons sold to unknown. Meal is $5 to $6 lower and oil is 30 to 40 points higher. Basis has moved to harvest levels, but strong export movement should limit further downside for basis, especially if harvest is slowed into the weekend. South American should make additional progress planting this week with better moisture in some areas expected, with some dry pockets remaining. Weekly export sales were strong at 2.18 million metric tons of soybeans, 254,400 of meal, and 4,100 of oil. On the chart, soybeans slipped back below the 10-day and 20-day moving average in the $9.58 to $9.62 area, which because resistance, with support at the $9.34 six-month low printed last week. WHEAT Wheat trade is 1 to 10 cents lower across the three contracts this morning with the winter wheat spread gains being reversed this morning with Minneapolis retaking the lead. The dollar strength will limit upside again with strength tied to weakness in the British pound. Weekly export sales were softer at 377,000 but Morocco bought 115,000 metric tons of wheat. The western reaches of the winter wheat belt in the U.S. will need better rains soon to support emergence with above normal temperatures expected to linger. On the KC 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.