DTN Midday Grain Comments 10/23 11:37

DTN Midday Grain Comments 10/23 11:37 Grains Lighly Mixed at Midday Corn, soybeans, and wheat are flat to lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 420. The interest rate products are weaker. The dollar index is 15 lower. Energies are weaker with crude down 2.15. Livestock trade is mixed with hogs higher and cattle lower. Precious metals are mixed with gold up $12. CORN Corn trade is narrowly mixed in quiet trade midday with trade looking to hold the support found to open the week. Outside markets are negative limiting upside. The harvest pace should be good the next few days with the more open weather expected to persist into late October. Some forecasts have started to drift wetter towards the end of the month, which is keeping combines rolling as much as possible. Ethanol margins remain tight with futures below $1.30 a gallon, and further energy complex weakness here at midday. Corn basis should see some pressure with better harvest pace. The weekly crop progress showed harvest at 49%, 2 percentage points ahead of average with conditions unchanged at 68% good to excellent, and 12% poor to very poor. On the December chart support is at the 20-day at $3.68 then the 50-day at $3.65. Resistance is at the 10-day at $3.71 then the $3.78 1/2 recent high. soybeans Soybean trade is flat to 2 cents lower at midday with trade bouncing back from some of the early weakness. Meal is $2 lower and bean oil is 25 to 35 points lower. Soybean basis will likely see pressure with harvest continuing to expand with some areas wrapping up. Quality concerns remain at the forefront as well, with some areas showing more damage than others. 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, and potentially NE Brazil longer term. The Brazil real has held near the upper end of the recent range, keeping effective nearby values well above the U.S. The weekly crop progress left conditions unchanged at 66% good to excellent, 12% poor to very poor with harvest at 53%, 14% behind the five-year average. On the November chart support is the 50-day at $8.55 which we have tested this morning, with the lower Bollinger band at $8.40 support, and resistance the 20-day at $8.63. WHEAT Wheat trade is flat to 2 cents with trade continuing to test the lower end of the range with the ongoing oversold conditions. The US dollar has faded slightly this morning with world wheat values again steady to firmer. Winter wheat planting is ongoing with better conditions in North America than Europe with some relief in the Black Sea areas. Prevent Planting dates are approaching soon on the plains. Australia remains in the recent weather pattern with harvest coming soon, MATIF milling wheat is firmer this morning. Planting progress was rated at 72%, 5 percentage points behind average, and emerged at 50%, 5 percentage points behind average. 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 5.05, and then $5.00. 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.