DTN Midday Grain Comments 10/31 11:40

DTN Midday Grain Comments 10/31 11:40 All Grains 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 25 points higher. The interest rate products are lower. The dollar index is 28 points higher. Energies are lower with crude down 1.30. Livestock trade is mostly higher. Precious metals are mixed with gold down $1.90. CORN Corn trade is 1 to 3 cents higher in quiet trade at midday with better buying starting to firm trade mid-morning. Ethanol production margins remain good; blender margins need improvement coming forward to absorb the strong production with crude sliding back below towards $48 a barrel, with ethanol futures edging slightly lower. Corn basis is still seeing some pressure in many areas as country elevators continue to fill up as harvest begins to wind down with progress likely near 75% on this afternoon. The weekly export inspections were solid at 791,896 metric tons. The USDA announced 100,973 of corn sold to Barbados, and 110,000 of sorghum to unknown. The spread trade has been slightly firmer this morning indicating that nearby demand remains strong. On the December contract support is at the $3.49 20-day then the 50-day at $3.39 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. SOYBEANS Soybean trade is 4 to 7 cents higher at midday with active two sided trade to start the week. Meal is flat to $1 lower and oil is mixed. Harvest progress should be past 85% on which should allow for pressure to continue to fade especially with strong nearby demand, as export inspections strong at 2.87 million metric tons. Brazilian weather has improved for good planting progresses and early crop development, but with trade continuing to watch the longer term forecast for signs of pattern change. The USDA also announced 264,000 metric tons sold to China. On the January soybean chart support is at the 10-day at $10.02, then the 200-day at $9.85. Resistance is the 100-day up at $10.25. WHEAT Wheat trade is 1 to 6 cents higher across the three contracts at midday with light buying as trade stays rangebound to start the week with limited spillover from row crops. The dollar remains near multi-month highs with the rebound this morning, which will limit upside potential. Weather concerns may build with the reduced acreage in the US, and dry weather in many of the winter wheat areas with emergence running behind normal, which is expected to continue on the report along with steady conditions and planting progress near normal. Export inspections remain soft 325,496 metric tons. On the KC December chart support is at the recent low at $4.08, with $3.97 below there. The two-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.