DTN Midday Grain Comments 10/02 11:00

DTN Midday Grain Comments 10/02 11:00 All Grains Lower at Midday Broadly weaker trade at midday with wheat the downside leader. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow down 510. The dollar index is 8 points lower. Interest rate products are weaker. Energies are weaker with crude down $1.20. Livestock trade is mostly lower. Precious metals are firmer with gold up $16. CORN Corn trade is 4 to 6 cents lower with trade pulling back at midday with overbought conditions and broad market selling as we look to consolidate recent gains. Rains will slow early harvest in many areas in the short term, with cooler near-term weather as well. The weekly ethanol report showed production up 15,000 barrels per day, just off 3-year lows, with stocks 731,000 barrels higher, which has ethanol futures off 4 cents, and is compressing margins again. Basis remains flat to weaker with anticipation of more inbound bushels soon. South American corn planting is underway, with second-crop shipments out of Brazil remaining active. On the December contract support is at the 50-day at $3.84 3/4, and resistance the high at $3.91 1/4. SOYBEANS Soybeans are 4 to 6 cents lower with trade pulling back from the highs scored yesterday with little fresh news. Meal is 2.00 to 3.00 lower and oil is 25 to 35 points higher. Crush margins remain good, but sustained trade progress is needed to get the market more excited. Economically US export competitiveness remains improved, but the real has faded again helping Brazil with action reversing slightly this morning. Bean basis remains flat in the interior until harvest expands more. South America has the beginnings of planting underway with mixed rains this week. On the November chart, support is the 10-day at $8.97 with the upper Bollinger Band remaining resistance at $9.17. WHEAT Wheat trade is 9 to 12 cents lower at midday with broadly weaker trade again as wheat lacks fresh news to push the market higher along with spillover weakness from the row crops this morning. The Chicago/Kansas City December spread is 85 cents with the higher end of the range being expanded again. The corn/HRW spread has narrowed to 16-17 cents. Winter wheat planting should expand more this week, but the market is not providing incentives to plant any more hard red winter acres than necessary, while Australia continues to see a bit of dry weather. The sharply stronger dollar will limit upside if sustained, with the upper end of the range being held for now. The December Kansas City chart support is at the 20-day at $4.03 which we are testing at midday, with resistance at the upper Bollinger Band at 4.17. 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 (BE) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.