DTN Midday Grain Comments 10/29 12:20

DTN Midday Grain Comments 10/29 12:20 Grains Mixed at Midday Beans are near the daily lows at midday with pressure following November option expiration. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 555. The interest rate products are lower. The dollar index is 25 higher. Energies are mixed with crude down $0.50, unleaded slightly higher and ethanol lower. Livestock trade is mixed. Precious metals are lower with gold down $3. CORN Corn trade is flat with trade around 3 higher overnight to 3 lower at mid-morning. Some chart buying was noted overnight after the good finish on Friday with market bears arguing harvest pressure should limit upside this week. Ethanol margins remain poor with the blender margins remaining solid. Ethanol futures are still near all-time lows with December futures under $1.29 at midday. The weekly export inspections were disappointing at 652,995 metric tons. The weekly Crop Progress report should show harvest pace right around the average, at about two-thirds complete. On the December chart, support is at the 50-day at $3.63 3/4, then the Lower Bollinger Band at $3.60. Resistance is at the $3.71 1/2 overnight high, then the recent $3.78 1/2 high. SOYBEANS Soybean trade is 5 to 6 cents lower at midday with trade failing to hold the initial overnight gains after the positive finish on Friday. Meal is fractionally lower, and bean oil is 20 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 again to start the week. South America weather looks good in the near term. The Brazil real has firmed further after the presidential election this weekend. USDA announced 120,000 metric tons of soybeans sold to unknown. The weekly export inspections were better at 1.304 million metric tons. The weekly Crop Progress report is expected to show harvest pace about 10% behind the five-year average. On the January chart, support is the lower Bollinger band at $8.49 support. Resistance is the 50-day at $8.66. WHEAT Wheat trade is narrowly mixed at midday with trade coming back to fill the gap higher on the Sunday night open after the strong finish Friday. In the bigger picture, oversold conditions are still in place. The U.S. dollar has traded firmer to start the week. Winter wheat planting is ongoing with better conditions in North America than Europe. Prevented 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 weaker this morning. U.S. export bids should remain competitive in the near term with some business to Egypt captured last week. The weekly export inspections were 393,255 metric tons. The weekly Crop Progress report should show planting and emergence slightly behind normal, with initial conditions ahead of last year. On the December KC chart, we are below all major moving averages. 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.