DTN Midday Grain Comments 10/19 11:20

DTN Midday Grain Comments 10/19 11:20 Corn, Beans Higher at Midday; Wheat Mixed Grain trade is mostly higher is slow midday trade; crude lending support. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow 60 points higher. The interest rate products are lower. The dollar index is 6 points lower. Energies are mixed with crude up 1.40. Livestock trade is mixed. Precious metals are mixed with gold up $9.90. CORN Corn trade is 2 cents higher at midday with better outside market support developing during the day session. The weekly ethanol production report had production 3.74% higher, and stocks 1.81% lower, with gasoline demand down 5.03%. December ethanol futures are unchanged on the day, but the strength this month has priced-in supportive items. December ethanol is up 15 cents a gallon since a month ago. Open weather should mean rapid harvest progress, which will add more basis pressure. Spread trade has firmed slightly in recent days taking some carry out of the futures reflecting demand strength as well. On the December contract chart support is at $3.50 area with the 10-day at $3.47 below there. Resistance is at the $3.58 3/4 3-month high printed on Friday, then the $3.63 1/2 100-day followed by the 200-day at $3.73. SOYBEANS Soybean trade is a nickel higher at midday with November trade consolidating above $9.70. Meal is fractionally and oil is 35 to 45 points higher. Better rains are expected for the drier areas of Brazil in the near term to aid early planted acres with above normal temperatures fading. This is limiting the upside chart momentum today. Good harvest progress this week and expected in the week ahead has also brought in some selling interest on this light bounce we saw to start the week. The USDA announced 185,000 metric tons sold to unknown indicating buying interest from exporters remains good. Basis should widen this week and we have added some carry to the market reflective of larger than expected yields coming in. The November to January carry is nearing a dime; this has it at the widest levels of the year. On the November soybean chart support is the $9.70 50-day, then the $9.59 20-day. Resistance is at the $9.87 high reached yesterday, then $10, then the 100-day up at $10.26. WHEAT Wheat trade is mixed at midday with Minneapolis having the most strength up 4 cents; Kansas City is up 2 with Chicago down a penny. We have seen some positive chart momentum this week but we seem to have found resistance in the area of our September highs. The dollar remains at the upper end of the range, with Russia still the cheapest origin for the key importing nations. Egypt has announced plans to build a bigger stockpile of consumer staples which should help to find more demand in the near term. Weather concerns may build with the reduced acreage in the U.S., and dry weather at emergence for a chunk of the western belt. On the Kansas City December chart support is the 50-day at $4.19 then the 20-day at $4.13. Resistance is at the $4.29 upper Bollinger Band then the August $4.49 3/4 high. 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.