DTN Midday Grain Comments 10/02 11:46

DTN Midday Grain Comments 10/02 11:46 Grains Trending Higher at Midday Trade is flat to firmer across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 110. The interest rate products are weaker. The dollar index is 7 higher. Energies are firmer with crude up 0.10. Livestock trade is mostly lower. Precious metals are firmer with gold up $19.00. CORN Corn trade is fractionally to a penny higher at midday with trade testing the upper end of the range. 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 to open the week with blenders seeing further improvement on the energy complex strength. Corn basis is expected to stay sideways to soft with wet weather limiting weakness. The weekly crop progress showed conditions steady at 69% good to excellent, and 12% poor to very poor, with 86% mature, 20% ahead of average, and harvest 26% complete, 9% ahead of average. On the December chart the 10-day, the 20-day at $3.58-3.59 is support and the 50-day at $3.67 is resistance, with the 100-day at 3.77 3/4 the next level of resistance. SOYBEANS Soybean trade is 2 to 4 cents higher with trade testing resistance after early two-sided trade. Meal is flat to $1.00 lower and oil is 30 to 40 points higher. Soybean basis remains historically wide across the belt with storage and shipping concerns continuing to dominate with the daily export wire quiet so far this week. 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 parts of Argentina remaining dry. The Brazilian and Argentine currencies remain historically cheap. The weekly crop conditions were unchanged at 68% good to excellent, and 10% poor to very poor, with 83% dropping leaves, 8% ahead of average, with harvest 23% complete, 3% ahead of average. On the November chart support is the 10 day at $8.47, with the 20-day at $8.41 below that, with resistance the recent high at $8.64 scored today with the 50-day at $8.62 which we are just above at midday. WHEAT Wheat trade is 3 to 6 cents higher at midday with trade coming back off the early lows again today, with a strong finish needed to sustain buying. The U.S. dollar remains near the upper end of the recent range with further buying this morning. 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 mixed this morning following the lead of the U.S. market. Winter wheat planting progress was 43% complete, 3% ahead of average, and 14% emerged, same as average. On the December Kansas City chart, we have resistance at the 20-day at $5.18 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.