DTN Midday Grain Comments 10/08 11:26

DTN Midday Grain Comments 10/08 11:26 Grains Mixed at Midday Soybeans lead at midday, with corn and wheat softer. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 85. The interest rate products are not traded due to the holiday. The dollar index is 25 higher. Energies are mixed with crude down 0.30. Livestock trade is mixed with hogs leading. Precious metals are mostly lower with gold down $16.50. CORN Corn trade is 1 to 2 cents lower at midday with light two sided action to start. Rains will limit harvest in the near term with a focus on how well the crop will stand during the rain event. Ethanol futures have held just above the lows, but have struggled to build broader strength with unchanged action today. Corn basis is expected to stay sideways to soft with wet weather limiting weakness in some areas. Weekly export inspections are expected to be in the 1.0 to 1.5 million metric ton range. Weekly crop progress should reflect the slowing harvest pace and wetter near term weather when it comes out tomorrow with the Columbus Day holiday. On the December chart the 10-day at $3.65, and the 50-day at $3.67 is support with trade just below the 50-day at midday, with the 100-day at 3.76 the next level of resistance. SOYBEANS Soybean trade is making new highs for the move at midday with back-and-forth trade overall, currently 1 to 3 cents higher with the harvest delays. Meal is flat to $1 higher and oil is 10 to 20 points higher. Soybean basis has found some footing with the delays, although it remains abnormally wide. Crush margins remain strong even with some early-week softness. 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 up solidly to start the week after the Brazilian election. Weekly export inspections are expected to be in the range of 600,000 to 1.0 million metric tons when released. Weekly crop progress should reflect the slowing pace over the past week with conditions unlikely to change. On the November chart support is the 50-day at $8.61, with resistance the overnight high at $8.74 and the upper Bollinger band at $8.76 1/2. WHEAT Wheat trade is 1 to 6 cents lower at midday with range-bound trade continuing with trade unable to sustain moves in either direction. The U.S. dollar remains near the upper end of the recent range with buying again to start the week. World spring wheat harvest is nearing completion, while winter wheat planting is ongoing with better conditions in North America than Europe. Australia remains in the recent weather pattern. Matif milling wheat is softer to start the week. On the December Kansas City chart, we have support at the 20-day at $5.19 which 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.