DTN Midday Grain Comments 10/30 11:25

DTN Midday Grain Comments 10/30 11:25 All Grains Lower at Midday Lower trade across the board at midday; trade is slow. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 230. The interest rate products are firmer. The dollar index is 25 higher. Energies are weaker with crude down $0.75. Livestock trade is mostly lower. Precious metals are lower with gold down $1. CORN Corn trade is 1 to 3 cents lower with early mixed action giving way to light selling during the day session. Ethanol margins remain poor with the blender margins remaining solid. More ethanol capacity is likely to be idled in the near term as futures edge lower again Tuesday morning. Basis should remain sideways to soft as harvest should make good progress this week. The weekly Crop Progress report pegged harvest at 63% complete, the same as average. 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 $3.68 daily high, then the recent $3.78 1/2 high. Chart momentum is a little weak. SOYBEANS Soybean trade is 2 to 4 cents lower at midday, keeping action in the lower part of the recent range. Meal is $0.50 to $1.50 lower, and oil is flat to 10 cents lower. Soybean basis has been sideways to firmer in the areas that are wrapping up. Quality concerns will linger in many areas as well. Crush margins remain strong in the near term, but the meal rally to start the week has faltered. The South America weather looks good in the near term. The Brazil real broke sharply lower after firming immediately after the presidential election. The weekly Crop Progress report showed harvest at 72%, 9 percentage points behind average. On the January chart, support is the lower Bollinger band at $8.44 support, and resistance the 50-day at $8.64. WHEAT Wheat is 4 to 9 cents lower with buying evaporating again with world prices fading as well. In the bigger picture, oversold conditions are still in place, although they have eased the last two session. The U.S. dollar has traded firmer to start the week, touching the top end of the range, limiting U.S. competitiveness. Winter wheat planting is in the homestretch with prevented planting dates past in western Kansas. Muddy conditions persist in parts of Kansas, which could limit some acres. The weekly Crop Progress report places planting at 78% complete, 7 percentage points behind average. The first weekly condition report showed 53% good to excellent and 14% poor to very poor on 63% emergence, 4 percentage points behind the five-year average. Australia remains in the recent weather pattern with harvest coming soon. Matif milling wheat is weaker Tuesday morning. On the December KC chart, we are below all major moving averages. The lower Bollinger Band at $4.89 is support with the first level of resistance the 10-day at $5.04. 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.