DTN Midday Grain Comments 10/25 11:15

DTN Midday Grain Comments 10/25 11:15 All Grains Lower at Midday Broad weakness at midday with trade lower across the board. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 390. The interest rate products are firmer. The dollar index is 24 higher. Energies are firmer with crude up 0.50. Livestock trade is mostly lower. Precious metals are flat to higher with gold up 1.10. CORN Corn trade is 6 to 7 cents lower at midday with selling picking up during the day session as widespread ag selling builds with harvest pressure. The harvest pace should remain good the next few days, which should encourage selling with some short-term slowness with showers in parts of the Corn Belt. Ethanol margins remain under pressure with the weaker energy complex and poor forward margins absent an ethanol export program with ethanol futures off another penny and a half this morning. Corn basis should see some pressure with better harvest pace, with firmer action in areas with harvest wrapping up in the South. The weekly export sales were poor at 349,500 metric tons. On the December chart support is the lower Bollinger Band at $3.58, with resistance the 50-day at $3.64 now. SOYBEANS Soybean trade is 7 to 9 cents lower with poor exports and harvest pressure leaning on the market with more oversold conditions approaching. Meal is $1.50 to $2.50 lower and oil is 0.10 to 0.20 cent lower. 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. Crush margins remain strong in the near term, even with product weakness this week. South America continues to make great planting progress with good weather so far. The Brazil ral has held near the upper end of the recent range, keeping effective nearby values well above the U.S. Weekly export sales were disappointing again at 212,700 metric tons of beans, 203,000 MT of meal, and oil was 26,000 MT. On the November chart support is the lower Bollinger Band at $8.39 support, and resistance the 50-day at $8.54. WHEAT Wheat trade is 3 to 8 cents lower with trade continuing to test the lower end of the range with the ongoing oversold conditions and pressure from the row crops. The U.S. dollar has surged to new highs on flight to safety trade, triggering some renewed selling with world prices steady to higher overall. 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 with muddy conditions persisting in parts of Kansas which could limit some acres. Australia remains in the recent weather pattern with harvest coming soon. MATIF milling wheat is flat to slightly lower at midday as well. Weekly export sales showed some improvement at 442,600 metric tons. On the December Kansas City chart, we are below all major moving averages, and the lower Bollinger Band at $5.02 with support the $4.90 low. 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.