DTN Midday Grain Comments 10/24 11:58

DTN Midday Grain Comments 10/24 11:58 All Grains Lower at Midday Lower trade across the board at midday with wheat the downside leader. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 220. The interest rate products are weaker. The dollar index is 40 higher. Energies are firmer with crude up 0.70. Livestock trade is mostly higher. Precious metals are mostly lower with gold down 5.90. CORN Corn trade is 1 to 2 cents lower working just below the $3.70 area again at midday showing the best support among the grains this morning. The harvest pace should remain good the next few days, which should encourage selling. The weekly ethanol report showed production slightly higher, with stocks slightly lower with some west coast imports, which has helped ethanol futures to edge slightly higher. Corn basis should see some pressure with better harvest pace. 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 4 to 6 cents lower at midday with trade carving out more of a nearby range with harvest pressure and quality concerns battling. Meal is $4.50 to $5.50 lower and bean oil is narrowly mixed. Soybean basis has been sideways to firmer in the areas that are wrapping up. Quality concerns remain at the forefront as well, with some areas showing more damage than others, with the areas that received the most rain, the worst. Crush margins remain strong in the near term, with oil taking the lead today. 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 ral has held near the upper end of the recent range, keeping effective nearby values well above the U.S. On the November chart support is the 50-day at $8.54, which we are just below at midday, with the lower Bollinger band at $8.40 support, and resistance the 20-day at $8.63. WHEAT Wheat trade is 4 to 11 cents lower at midday with trade continuing to test the lower end of the range with the ongoing oversold conditions. The US dollar has surged to new highs on flight to safety trade, triggering some renewed selling. 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 flat to slightly lower this morning. On the December Kansas City chart, we are below all major moving averages, and the lower Bollinger Band at $5.02. 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.