DTN Midday Grain Comments 10/14 10:59

DTN Midday Grain Comments 10/14 10:59 Grains Trending Higher at Midday Trade is higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow 65 points higher. The interest rate products are mostly higher. The dollar index is 45 points higher. Energies are lower with crude down 0.30. Livestock trade is mostly higher. Precious metals are lower with gold down $3.30. CORN Corn trade is 4 to 7 cents higher at midday with firmer trade continuing as the $3.50 area fell overnight, with broader buying in the ag complex this morning. Harvest progress should pick up as warmer weather returns to the corn belt, which should keep pressure on the basis as more bushels come in. Ethanol margins remain firm with rising corn values eating into them slightly. The weekly export sales were solid at 873,400 metric tons. On the December contract chart support is now the $3.50 area that fell overnight, with the 10-day at $3.45 below that, and the next level of resistance is the 200-day at $3.73. SOYBEANS Soybean trade is 8 to 12 cents higher at midday with trade finding buying after the reversal yesterday afternoon. Meal is mixed, and oil is 90 to 100 points higher. Harvest pressure should linger with over 50% of the crop likely out of the field, with renewed basis pressure expected. The weekly sales were strong at 1.42 million metric tons, 120,800 metric tons of meal, and 16,900 of oil. On the November soybean chart support is at the $9.58-9.60 area of the 10-day and 20-day moving average. Resistance is at the $9.75 200-day moving average, which has stopped the last few rallies and held this morning. WHEAT Wheat trade is flat to 10 cents higher overnight with trade continuing to see strength after the turnaround yesterday with Chicago trade leading as Minneapolis struggles to hold gains. We have had trouble sustaining buying on recent rallies and the dollar is stronger this morning which could limit upside as the week closes. The drought monitor has shown expansion of moisture deficits in much of the winter wheat growing areas, with soft wheat areas showing the most issue so far. There are growing concerns about protein premiums which should favor the spring wheat in the near term, although it hasn't this morning. The weekly export sales were good at 491,000 metric tons of new crop, and 32,000 of new crop. On the Kansas City December chart support is at $3.98, the October low, then the contract low at $3.95. Chart resistance is at the 20-day at $4.12, which we have moved above overnight, with the 50-day at $4.20 the next round higher from there. 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.