DTN Midday Grain Comments 10/26 11:33

DTN Midday Grain Comments 10/26 11:33 Grains Mixed at Midday Row crops hang near unchanged at midday, with wheat weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer this morning with the Dow up 85 points. The interest rate products are lower. The dollar index is 75 higher. Energies are mixed with crude up $0.25. Livestock trade is mostly higher. Precious metals are mixed with gold down $4.70. CORN Corn trade continues to chop around the $3.50 area, with trade flat to 2 cents lower at midday. Ethanol margins remain range bound with lower levels of exports the biggest near-term concern with futures edging slightly higher this morning. Basis should see harvest pressure while carry continues to work at wide levels moving, with a slight narrowing this morning. Weather looks to remain open for the west with the east still slow as cooler temperatures move in. The weekly export sales were strong at 1.29 million metric tons. On the December chart support is at the $3.42 1/2 low with resistance at the $3.53 50-day moving average which we tested this morning then the $3.58 six-week high. SOYBEANS Soybean trade is flat to 2 cents higher at midday with trade continuing to hold the $9.75-area again overnight. Meal is $0.50 to $1.50 lower and oil is 25 to 35 points higher. South American weather is expected to ease the drier areas in next 5-10 days as planting progresses, limiting buying enthusiasm. Soybean basis has remained mostly steady with carry steady. The daily export wire has been quiet this week, raising some demand concerns. The weekly export sales were strong at 2.13 million metric tons of beans, 142,800 of meal, and 27,900 of oil. On the November chart, trade is above all the major moving averages, with the 200-day at $9.75 support and resistance at the recent high of $10.03. WHEAT Wheat trade is 2 to 5 cents lower at midday with the stronger dollar and lackluster exports weighing on the market at midday. The dollar is back above the 94 level on the index on the extension of the Euro Central Bank stimulus. U.S. exports have been slowed lately as Black Sea origin continues to dominate world movement in the near term. Export sales remain soft at 390,600 metric tons of old and new crop. But it was improved over last week. The Southern Hemisphere crop will continued to be watched with drier weather replacing floods in South America near term. Planting progress should expand this week, with early stands good with wet conditions still slowing action in South Central Kansas. On the December Kansas City support is at the $4.20 low with resistance the 50-day at $4.38. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.