DTN Midday Grain Comments 10/23 11:04

DTN Midday Grain Comments 10/23 11:04 Flat to Lower Trade at Midday Corn is 1 cent to 2 cents lower; soybeans are 1 cent to 2 cents lower, and wheat is flat to 2 cents higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer with the Dow up 55. The U.S. dollar index is 5 points higher. Interest rate products are weaker. Energies are firmer with crude up $0.70. Livestock trade is mixed. Precious metals are firmer with gold up $9.00. CORN: Corn trade is 1 cent to 2 cents lower at midday with trade fading into support levels with harvest pressure and little fresh news. Harvest will expand with in some areas but will remain off the pace overall. The weekly ethanol report showed further rebounds in production to 996,000 barrels per day (bpd), up 25,000 bpd, with stocks down 697,000 barrels. Basis remains flat to weaker with anticipation of more inbound bushels soon with pockets of localized strength. South America looks to remain in the same weather pattern for now as planting continues. On the December contract support is at the 20-day moving average at $3.88, which we are just below at midday; with the 50-day at $3.76 the next level of support. Chart resistance is at the 10-day at $3.91. SOYBEANS: Soybeans are 1 cent to 3 cents lower at midday with trade moving back to the lower end of the range with harvest pressure and little fresh news otherwise, with 128,000 metric tons (mt) of exports to unknown hitting the daily wire. Meal is flat to $1.00 higher and oil is 10 cents to 20 cents lower. Crush margins remain solidly bullish, along with trade backing off overbought conditions. The real has firmed but remains rangebound. Bean basis should see pressure as combines continue to roll. South America should make more progress this week and into the second half of the month with some weather issues remaining and planting pace solidly behind. On the November chart, support is at the 10-day at $9.33, which we are testing at midday with the upper Bollinger band at $9.50 as resistance. WHEAT: Wheat trade is mixed in quiet midday trade with little fresh news to move the market and Chicago holding the contract highs. The Chicago/Kansas City December spread is 99 cents with trade hitting new highs again after early choppy trade. The corn/HRW spread has narrowed back to 34 cents, with wheat still on the edge of rations. Export action continues to be dominated by Black Sea origin, but their prices have firmed while Australia remains dry. The December KC chart support is at the 20-day at $4.15 with the 10-day at $4.22; the next level up, with the upper Bollinger band right at $4.34. 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 (CZ) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.