DTN Midday Grain Comments 10/07 11:28

DTN Midday Grain Comments 10/07 11:28 Grains Mixed at Midday Trade is mixed at midday giving back early gains. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 35 points. The interest rate products are higher. The dollar index is 10 points lower. Energies are mixed with crude down 0.11. Livestock trade is mostly lower. Precious metals are higher with gold up $1.20. CORN Corn trade is narrowly mixed at midday with trade continuing to hold above nearby support after some early buying. Soybeans and wheat have fading off early strength giving light spillover pressure. Ethanol margins are expected to remain steady with the energy complex moving higher this week. Weather should open up more for harvest in the near term after we dry back out from the midweek storms. Basis should see more harvest pressure as more bushels come to town. On the December contract chart support is the 10-day and 20-day moving average at $3.37, with the $3.45, and then $3.50 area as resistance going into the weekend. SOYBEANS Soybean trade is narrowly mixed as well with trade setting back after testing the weekly highs this morning. Meal is flat to $1 lower and oil is 10 to 20 points lower. Basis has moved to harvest levels, but strong export movement should limit further downside for basis, with harvest slowed going into the weekend. The USDA announced 195,000 metric tons of soybeans sold to unknown. South America should make additional progress planting this week with better moisture in some areas expected, with some dry pockets remaining. On the chart, soybeans are just above the 10-day and 20-day moving average in the $9.56 to $9.59 area, with further support at the $9.34 six-month low printed last week. Resistance is the 50-day moving average at $9.71. WHEAT Wheat trade is narrowly mixed at midday with trade chopping around in the weekly range after we failed to hold gains yesterday and this morning. The dollar strength will limit upside again with strength tied to weakness in the British pound but trade has softened since the jobs report this morning. 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 into mid-October, while the central part of the belt caught some rains. On the Kansas City December chart support is now the $4.03 low from this Monday with $3.95 below that; resistance is at $4.12-15 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.