DTN Midday Grain Comments 10/31 11:21

DTN Midday Grain Comments 10/31 11:21 Soybeans Higher, Corn Mixed, Wheat Lower at Midday Soybeans lead at midday, up around a nickel. Corn is flat, and wheat is lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 350. The interest rate products are firmer. The dollar index is 4 higher. Energies are mostly higher with crude up $0.20. Livestock trade is mixed. Precious metals are mixed with gold down $9. CORN Corn trade is narrowly mixed at midday, remaining range bound through midweek. Ethanol margins remain poor with the blender margins remaining solid. The weekly ethanol report shows a 35,000-barrel-per-day production increase, and a 1.15-million-barrel stocks draw. The negative margin situation has limited ethanol futures to flat with the production boost. Basis should remain sideways to soft as harvest should make good progress this week. On the December chart, support is at the 50-day at $3.63 1/4, then the Lower Bollinger Band at $3.60. Resistance is at the 20-day $3.68, then the recent $3.78 1/2 high. SOYBEANS Soybean trade is 5 to 7 cents higher at midday with trade trying to score a reversal from the sharply oversold conditions. Meal is $1 to $2 higher, and oil is narrowly mixed. 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, with meal regaining the lead Wednesday morning. The South America weather looks good in the near term. The Brazil real remains soft with the premium for Brazilian beans narrowing slightly. On the January chart, support is the lower Bollinger band at $8.40 support. Resistance is the 50-day at $8.63. WHEAT Wheat is 3 to 6 cents lower at midday with buying evaporating again. World prices are fading with Russia continuing to push exports into the world market. In the bigger picture, oversold conditions are still in place with the failure to confirm the late last week reversal. The U.S. dollar has traded firmer to start the week, touching the top end of the range, limiting U.S. competitiveness. Australia remains in the recent weather pattern with harvest going in some areas. Planting delays will persist on the Plains in the next week. Matif milling wheat is weaker Wednesday morning. On the December KC chart, we are below all major moving averages. The lower Bollinger Band at $4.86 is support with the first level of resistance the 10-day at $5.02. 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.