DTN Midday Grain Comments 10/04 11:39

DTN Midday Grain Comments 10/04 11:39 All Grains Higher at Midday Trade is firmer across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 205. The interest rate products are firmer. The dollar index is narrowly mixed. Energies are weaker with crude down 0.90. Livestock trade is mostly lower. Precious metals are mixed with gold up $3.60. CORN Corn trade is 2 to 3 cents higher with trade maintaining position in the upper end of the recent range but it has been unable to conclusively move through resistance. Harvest will slow with wet weather through much of the belt, with some concerns building about stalk quality. Ethanol margins remain tight with the ethanol futures rally fading with the bigger stocks yesterday while trying to hold the 1.30 area. Corn basis is expected to stay sideways to soft with wet weather limiting weakness. The weekly export sales were strong at 1.43 million metric tons. On the December chart the 10-day at $3.63, then the 20-day at $3.58 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 3 to 5 cents higher at midday with trade working to consolidate the recent gains. Meal is $2.00 to $3.00 higher and oil is flat to 10 points lower. Soybean basis has found some footing with the delays, although it remains abnormally wide. 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, and south Brazil fairly wet. The Brazilian and Argentine currencies remain historically cheap but are firming a bit this week. The weekly export sales were strong at 1.52 million metric tons, with meal at 58,900 of old crop, and 411,700 of new, with oil at 7,600 of old, and 9,700 of new. On the November chart, support is the 10-day at $8.52, and resistance the 50-day at $8.62, which we are just above overnight and the recent high at $8.70 above that. WHEAT Wheat trade is 2 to 4 cents higher with sideways trade continuing in the near term with trade unable to sustain broader buying so far. The U.S. dollar remains near the upper end of the recent range with upward momentum slowing. World spring wheat harvest is struggling to finish with some challenging weather with winter wheat planting ongoing with better conditions in North America than Europe. Australia remains in the recent weather pattern. Matif milling wheat is firmer. The weekly export sales were in line with recent action at 435,500 metric tons. On the December Kansas City chart, we have support at the 20-day at $5.18 which with resistance the upper Bollinger Band at $5.33. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.