DTN Midday Grain Comments 10/07 10:54

DTN Midday Grain Comments 10/07 10:54 Grains Mixed at Midday Grains are mixed in range-bound trade at midday Monday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is mixed with the Dow 10 higher. The dollar index is flat. Interest rate products are firmer. Energies are firmer with crude up $1.00. Livestock trade is mixed with hogs sharply lower. Precious metals are mixed with gold down $6.40. CORN Corn trade is 1 to 2 cents higher at midday with light buying to open the week with range-bound trade remaining in place. Drying will be needed to build harvest pace, with another shot of cold later in the week, potentially bringing snow to the north. The ethanol margins are stable to start the week with harvest progress likely to support production through basis action with futures slightly higher this morning. A package to support biofuels was unveiled Friday, 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. Weekly export inspections remain soft at 466,521 metric tons. Weekly crop progress is likely to show steady conditions and maturity and harvest pace well off the five-year average. On the December contract, support is at the 50-day at $3.80, and resistance is the upper Bollinger Band at $3.93. SOYBEANS Soybeans are 1 to 3 cents lower with trade chopping along the upper end of the range at midday with little fresh news ahead of the trade talks this week. Meal is $1.50 to $2.50 lower, and oil 10 to 20 points higher. Crush margins remain good, but sustained trade progress along with sales will be needed to push higher with trade getting overbought. Economically, U.S. export competitiveness remains improved, with the real gaining vs. the dollar 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 again. The weekly export inspections were good at 1.038 million metric tons. Weekly crop progress is expected to show steady conditions with harvest and maturity still well off the five-year pace. 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 mixed in quiet trade midday with choppy action likely to continue with few drivers in the wheat market amid planting progress in the winter wheat areas and harvest pretty well wrapped up in the North. Spring wheat is leading this morning, up 3 to 4 cents. The Chicago/KC December spread is 86 cents with steady action to start the week. The corn-hard red winter wheat spread has narrowed to 16-18 cents, pushing wheat back toward rations. Winter wheat planting should be solidly past the halfway point this week on the USDA Crop Progress report. Export inspections are range bound at 385,529 metric tons. The December KC chart support is at the $4.00 area after we faded through the $4.05 area Friday, which is resistance. 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.