DTN Midday Grain Comments 10/26 11:48

DTN Midday Grain Comments 10/26 11:48 All Grains Higher at Midday Trade is broadly higher at midday gaining back much of the Thursday decline. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 250. The interest rate products are higher. The dollar index is 21 lower. Energies are narrowly mixed at midday. Livestock trade is firmer. Precious metals are firmer with gold up $10. CORN Corn trade is 7 to 8 cents higher at midday gaining back most of the losses seen yesterday. Spillover support from wheat with short profit taking heading towards the weekend is noted supporting corn. The harvest pace should remain good the next few days, with harvest moving towards 2/3 complete; this may limit upside this afternoon heading into a harvest weekend. Ethanol margins remain poor with the weaker energy complex not helping the picture this week but for ethanol futures here at midday they are firmer. It is more so at the spillover support of corn up 8 cents that combined does not do anything good for margins. Corn basis should see some pressure with better harvest pace and the higher board. On the December chart support is the lower Bollinger Band at $3.58, with trade moving back above the 50-day at $3.64, with the 20-day at $3.68 3/4 being tested at midday which is nearby resistance with the seen about two weeks ago at $3.78 1/2 major resistance at this juncture. SOYBEANS Soybean trade is 5 to 6 cents higher at midday with trade finding light buying ahead of November option expiration along with spillover support from stronger action across the board. Meal is $3 to $5 higher and oil is 5 to 15 cents lower. Soybean basis has been sideways to firmer in the areas that are wrapping up. Quality concerns remain at the forefront as well. Crush margins remain strong in the near term, with meal retaking the lead today. The USDA announced sales and cancellations this morning, all to unknown with a net total of 80,000 metric tons sold. 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. On the November chart support is the lower Bollinger Band at $8.39 support, and resistance the 50-day at $8.53. WHEAT Wheat trade is 8 to 18 cents higher at midday with bouncing back sharply with very oversold conditions and rising world values. The US dollar has faded slightly this morning. Winter wheat planting is ongoing with better conditions in North America than Europe. Prevent planting dates are past in western Kansas 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 firmer. Asian importers are said to be looking for more milling wheat. On the December Kansas City chart we are below all major moving averages, and the lower Bollinger Band at $4.93 is support with the first level of resistance the 10-day at 5.11. 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.