DTN Midday Grain Comments 10/24 11:07

DTN Midday Grain Comments 10/24 11:07 Grains Mixed at Midday Soybeans lead flat midday trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is mixed with the Dow down 10. The dollar index is 25 higher. Interest rate products are weaker. Energies are firmer with crude up $0.20. Livestock trade is mostly lower. Precious metals are mixed with gold up $6.00. CORN Corn trade is 1 to 2 cents lower with choppy trade ongoing, with reports of China committing to $20 billion a year in ag goods if a deal is signed, which we would get us roughly back to the pre-trade war upper end of volume. Harvest will expand with in some areas, but will remain off the pace overall with another big cold shot next week. Ethanol futures are steady to higher holding margins in place. Basis remains flat to weaker with anticipation of more inbound bushels soon with still pockets of localized strength persisting, which is likely until we get to the back half of harvest. South American looks to remain in the same weather pattern for now as planting continues. Weekly export sales improved but remain soft at 491,500 metric tons, with 91,400 metric tons of new crop. On the December contract support is at the 20-day moving average at $3.88 which is where 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 to 2 cents higher with the choppy trade likely to continue as we look for a reason to take out the highs in the middle of harvest. Meal is 1.50 to $2.50 lower, and oil is 70 to 80 higher. Crush margins remain solidly positive, along with trade backing off overbought conditions. The real has firmed but remains rangebound, albeit at the top end right now. 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 months with some weather issues remaining and planting pace solidly behind still. Weekly export sales were disappointing at 475,200 metric tons, 110,300 mt of meal, and 3,300 of oil. On the November chart support is the 10-day at $9.33 which we tested today with the upper Bollinger Band at 9.50 as resistance. WHEAT Wheat trade is 3 to 5 cents lower at midday with early gains fading again as trade remains choppy. The Chicago/Kansas City December spread is 98 cents with trade coming off the highs overnight then stabilizing during the day session. The corn/HRW spread has narrowed back to 37 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. Weekly export sales were soft at 262,400 metric tons. The December Kansas City chart support is the 20-day at $4.15 with the 10-day at 4.22 where we closed today 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.