DTN Midday Grain Comments 10/18 10:54

DTN Midday Grain Comments 10/18 10:54 All Grains Lower at Midday Trade is lower at midday led by soybeans. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 200. The interest rate products are weaker. The dollar index is 15 higher. Energies are mixed with crude down $0.20. Livestock trade is weaker. Precious metals are mixed with gold up $2.60. CORN Corn trade is 3 cents to 4 cents lower with trade grinding along support with upside momentum slowing with harvest pressure returning to the market along with spillover trade from the outside markets. The harvest pace should begin to build again the next few days with the more open weather expected to persist into next week. Ethanol margins are under pressure again with the energy complex retreating and stocks continuing to build and futures testing the $1.25 area. Corn basis should start to see renewed pressure with better harvest pace. The weekly export sales were disappointing at 382,500 metric tons (mt). On the December chart support is at the 100-day at $3.71, which we are just below at midday then the 20-day at $3.67. Resistance is at the $3.78 1/2 September-October high reached on Monday. SOYBEANS Soybean trade is 15 cents to 17 cents lower with harvest pressure and outside market concerns encouraging liquidation this morning. Meal is $5 to $6 lower and oil is 30 cents to 40 points lower. Soybean basis will likely see pressure again later in the week as farmers get back into the fields. Crop losses from the weather will likely take a while for trade to sort out, and will likely trigger volatile trade at times. Crush margins remain strong in the near term. South America should continue to see fairly normal early season progress in the near term with good moisture with the biggest concerns in Argentina. The weekly export sales were weak with 293,600 mb of beans, 104,100 mt of meal, and 26,600 mt of oil. On the November chart support is the 10-day at $8.71, which we are testing at midday with the 20-day at $8.62 below that, with major resistance the 100-day at $8.85 3/4 and minor resistance at the recent high at $8.92. WHEAT Wheat trade is 3 cents to 6 cents lower with trade following the row crops lower after some early buying. The U.S. dollar has jumped back above 95 with more flight-to-safety trade. Winter wheat planting is ongoing with better conditions in North America than Europe with plenty of moisture on the plains. Australia remains in the recent weather pattern with some relief in the drier areas. MATIF milling wheat is flat to lower. Jordan secured Black Sea origin wheat on their tender, but the U.S. is getting more competitive. The weekly export sales are improved at 476,000 mt. On the December Kansas City chart, we are below at the 10-day and 20-day at $5.21 with the lower Bollinger Band support at $5.10. Resistance is at the upper Bollinger Band at $5.32. 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.