DTN Midday Grain Comments 10/01 11:37

DTN Midday Grain Comments 10/01 11:37 Corn, Beans Higher at Midday Row crops sharply higher to start the week, wheat weaker. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are firmer with the Dow futures up 255. The interest rate products are flat to higher. The dollar index is 20 higher. Energies are firmer with crude up 1.00. Livestock trade is firmer led by the hogs. Precious metals are weaker with gold down $4.70. CORN Corn trade is 7 to 9 cents higher with wet weather slowing harvest, giving us a boost along with trade optimism and good demand expected keeping support under the market. Harvest will slow with wet weather through much of the belt, and an increased focus on getting soybeans out. Ethanol margins remain tight but futures have been able to firm a little this morning with blenders seeing further improvement, while lower sugar prices hang over the world export market. Corn basis is expected to stay sideways to soft with wet weather limiting weakness. The weekly export inspections were strong at 1.344 million metric tons. The weekly crop progress is expected to show steady conditions maturity ahead of normal, and harvest pace just above average. On the December chart the 10-day, at $3.55 remains support, with resistance the 20-day at $3.58 which we moved through this morning, and the 50-day at 3.67 the next round higher. SOYBEAN Soybean trade is 14 to 17 cents higher at midday with trade seeing strong buying return with improved trade optimism and harvest delays boosting the market. Meal is $6 to $7 higher and oil is 25 to 35 points higher. Soybean basis remains historically wide across the belt with storage and shipping concerns continuing to dominate with the recent uptick in fresh sales needing to be sustained in the near term with nothing on the daily wire today. Crush margins remain strong with oil starting to show broader strength with Palm oil firmer on the world market. Early planting in South America is underway with little nearby weather concerns with past of Argentina remaining dry. The Brazilian and Argentine currencies remain historically cheap. Weekly export inspections were a little softer at 591,115 metric tons. The weekly crop progress should show steady conditions with maturity well above normal, and harvest progress in the same boat. On the November chart support is the 10 day at $8.42, with the 20-day at $8.40 below that, with resistance the recent high at $8.64 scored today. WHEAT Wheat trade is fractionally to 2 cents lower with world prices dragging on wheat futures and spread trade selling vs. buying beans and corn. The US dollar remains near the upper end of the recent range. Russia will continue to work on spring wheat harvest and winter wheat planting with little change in the weather patterns, with harvest in Canada trying to finish as well. Australia saw some freezing temperatures again. Matif milling wheat is weaker this morning. The weekly export inspections were soft at 369,270 metric tons. Winter wheat planting progress should be just ahead of normal on the weekly report his afternoon. On the December KC chart we have resistance at the 10-day at $5.20 which with support at the lower Bollinger Band at $5.00. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.