DTN Midday Grain Comments 10/24 11:27

DTN Midday Grain Comments 10/24 11:27 Wheat, Corn Lower at Midday Soybeans are higher at midday, but off the early highs, while corn and wheat test support. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow 90 points higher. The interest rate products are higher. The dollar index are 5 points higher. Energies are lower with crude down 0.50. Livestock trade is sharply higher for cattle and hogs. Precious metals are mixed with gold down $6.00. CORN Corn trade is 5 to 7 cents lower at midday with hedge pressure reemerging during the early part of the day session. Ethanol margins remain positive which should continue for the balance of the month with futures edging down slightly this morning. The weekly progress number should be back close to average with better progress last week and through the weekend, with export inspections softer at 541,527 metric tons as soybeans tie more capacity. Basis should remain under pressure this week as harvest continues. On the December contract chart support is at $3.50, the 10-day which we are below at midday, and then the 20-day at $3.45. Resistance is at the $3.59 1/4 3-month high than the $3.63 100-day followed by the 200-day at $3.73. Expect sell stops below $3.50 if we close weak today. The Cattle on Feed report was less than expected, which would imply slightly lower usage. SOYBEANS Soybean trade is 6 to 9 cents higher at midday with good buying returning to open the week although commercial pressure is hanging around as the spreads widen out and we set back from testing the $10.00 area. Meal is flat to $1.00 higher, and oil is 70 to 80 points higher. Harvest pressure should continue early in the week, but soybean harvest should be close to 80% nationally on the weekly report. Export inspections were strong at 2.732 million metric ton range. Basis will remain soft to start the week, but could start to improve later on as harvest winds down. Brazilian weather has improved as planting progresses with a mixed forward forecast. On the November soybean chart support is at the $9.70 50-day, then the $9.62 20-day. Resistance is at the $10 area, then the 100-day up at $10.25. WHEAT Wheat trade is 2 to 12 lower with the higher protein wheats maintaining their premiums this morning as selling pressure returns after great short covering than expected on the COT report. The dollar remains near five-month highs, keeping the U.S. at a disadvantage although the ruble has been firming recently as well. Weather concerns may build with the reduced acreage in the U.S., and dry weather in much of the west. The weekly progress report is expected to keep planting and emergence near normal, with export inspections at bit softer at 244,231 metric tons. On the Kansas City December chart support is the 50-day at $4.19 then the 20-day at $4.13 which we have spilled below at midday. 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.