DTN Midday Grain Comments 10/04 11:01

DTN Midday Grain Comments 10/04 11:01 Grains Mixed at Midday Mixed action in rangebound trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer with the Dow 200 higher. The dollar index is 5 points lower. Interest rate products are mixed. Energies are firmer with crude up $0.20. Livestock trade is lower. Precious metals are weaker with gold down $1.40. CORN Corn trade is 3 to 4 cents lower with choppy action continuing with nearby support holding firm with little fresh news. Rains will slow early harvest in many areas in the short term, with cooler near term weather as well before drier action likely into next week which should help to expand harvest ahead of the next cold front. The ethanol margins have narrowed with the corn rally and the softer energy complex but futures have held up better heading towards the end of the week with flat to weaker action this morning. A package to support biofuels was unveiled but the market showed little reaction. 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 $3.81 1/2, and resistance the upper Bollinger Band at 3.94. SOYBEANS Soybeans is flat to 3 cents higher in quiet midday trade as well with little fresh news to push the market further through the upper end of the range. Meal is $0.50 to 1.50 higher and oil is flat to 10 points lower. Crush margins remain good, but sustained trade progress is needed to get the market more excited with the daily wire quiet today. Economically U.S. export competitiveness remains improved, with the ral gaining vs. the dollar the second half of the week. 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 $9.01 with the upper Bollinger Band remaining resistance at $9.24. WHEAT Wheat trade is narrowly mixed at midday with trade staying within the recent range overnight with Minneapolis showing the best action so far. The Chicago/Kansas City December spread is 85 cents with light widening. The corn/hrw spread has narrowed to 16-18 cents pushing wheat back towards rations. Winter wheat planting should expand more over the weekend, but the market is not providing incentives to plant any more hard red winter acres than necessary with moisture good on the plains for now, while Australia continues to see a bit of dry weather. The December Kansas City chart support is at the 20-day at $4.05 which we are holding overnight, with resistance at the 50-day at 4.11. 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 (BE) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.