DTN Midday Grain Comments 10/05 11:00

DTN Midday Grain Comments 10/05 11:00 Row crops are mixed with wheat flat at midday. Row crops are mixed with wheat flat at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 160. The interest rate products are firmer. The dollar index is narrowly mixed. Energies are firmer with crude up 0.50. Livestock trade is higher led by hogs. Precious metals are mixed with gold up $5.00. CORN Corn trade is 2 to 3 cents lower at midday with trade pulling back again from the overnight test of the highs. Harvest will slow with wet weather through much of the belt, with some concerns building about stalk quality and wind issues in some areas. Ethanol futures have held just above the lows, but forward momentum has slowed except for blender margins this week. Corn basis is expected to stay sideways to soft with wet weather limiting weakness in some areas. On the December chart the 10-day at $3.64, then the 20-day at $3.58 is support and the 50-day at $3.67 is resistance, with the 100-day at 3.76 the next level of resistance. SOYBEANS Soybean trade is flat to 2 cents higher at midday with still struggling with the 50-day moving average just above the current trade. Meal is $1.00 to $2.00 higher and oil is 15 to 25 points lower. Soybean basis has found some footing with the delays, although it remains abnormally wide. Crush margins remain strong even as the veg oil rally slows a bit. 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 daily wire had 134,000 metric tons of soy meal sold to the Philippines. On the November chart support is the 10-day at $8.54, and resistance the 50-day at $8.62, which we are just below at midday and the recent high at $8.70 above that. wheat Wheat trade is flat to 2 cents higher with trade still working to break out of the upper end of the range after the earlier attempts this week faltered. 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 with Russia winning some of the traditional euro business this week. On the December Kansas City chart, we have support at the 20-day at $5.19 with resistance the upper Bollinger Band at $5.34. 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.