DTN Midday Grain Comments 10/28 11:12

DTN Midday Grain Comments 10/28 11:12 Grains Lower at Midday Trade is lower at midday, led by wheat. 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 12 points lower. Energies are mixed with crude down 0.20. Livestock trade is higher. Precious metals are mixed with gold down $1.10. CORN Corn is flat to 2 cents lower in quiet trade at midday with trade looking to hold the higher end of the range into the weekend to provide another positive close. Ethanol production margins remain good; blender margins need improvement coming forward to absorb the strong production with crude sliding back below $50 a barrel. Corn basis is still seeing some pressure in many areas as country elevators continue to fill up as harvest begins to wind down. The spread trade has been slightly firmer this morning indicating that nearby demand remains strong. On the December contract support is at the $3.47 20-day then the 50-day at $3.38 which is the lowest major moving average. Resistance is up at the $3.59 1/4 3-month high then the $3.61 100-day. We have come within a penny of the high this week. Expect buy stops above there, and if we slip back below $3.50 over the next few days the trade may be talking about a double top. SOYBEANS Soybean trade is narrowly mixed overnight with trade looking to consolidate further in the upper end of the range going into the weekend. Meal is $2 to $3 lower and bean oil is 40 to 50 points lower. Harvest pressure is limiting upside but should fade as we hit the homestretch for soybeans with basis pressure increasing as harvest gets ahead of train capacity in some areas due to the continued larger-than-expected yield reports. Brazilian weather has improved for good planting progresses and early crop development, but forecasters have mixed ideas moving forward with the extended forecast moving drier. On the November soybean chart support is at the 10-day at $9.91, then the 200-day at $9.81. Resistance is the 100-day up at $10.23 after the continued positive finishes. WHEAT Wheat trade is 1 to 6 cents lower across the three contracts at midday with trade continuing to struggle to hold strength with supplies weighing on the market and a lack of positive spillover trade from the row crops this morning. The dollar remains near multi-month highs with light weakness at midday as trade looks to back away from the upper end of the range. Weather concerns may build with the reduced acreage in the U.S., and dry weather in many of the winter wheat areas so far. On the Kansas City December chart support is at the 20-day at $4.13, with $3.97 below there. The 2 month high at $4.28 1/4 is key resistance. 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.