DTN Midday Grain Comments 10/28 10:54

DTN Midday Grain Comments 10/28 10:54 Grains Mixed at Midday Soybeans lead mixed trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer with the Dow up 115. The dollar index is 5 lower. Interest rate products are firmer. Energies are weaker with crude down $0.60. Livestock trade is mixed. Precious metals are mixed with gold down $6.50. CORN Corn trade is 2 to 3 cents lower at midday with trade again testing support at the bottom of the recent range to start the week. Harvest will likely be slowed with the cold front moving into the bulk of the belt the first half of the week. Ethanol margins remain stable with futures flat this a.m. Basis should see more pressure this week as the bushel accumulate. South America looks to remain in the same weather pattern for now as planting continues with dry pockets persisting. Weekly export inspections remain soft at 380,660 metric tons. Weekly crop progress should be getting closer to half complete with conditions steady. On the December contract, support is the recent low at $3.84, then the 50-day at $3.77 the next level of support. Chart resistance is at the 10 and 20-day at $3.89. SOYBEANS Soybeans is 1 to 3 cents higher at midday with trade trying to recover from the washout Friday into a harvest weekend with choppy action so far during the day session. Meal is flat to $1.00 higher, and oil is 25 to 35 points lower. The USDA announced 135,000 metric tons of meal sold to the Philippines. Crush margins remain solidly positive, along with trade backing off overbought conditions with the break which should help to build support. The real is scoring new highs this a.m. as well, helping U.S. competitiveness. Bean basis should see pressure as combines continue to roll with the homestretch of harvest nationally likely by the end of the week. South America should make more progress this week with dry pockets persisting. Weekly export inspection are expected to be in the 900,000 to 1.2 million metric ton range, with crop progress showing harvest closing in on 2/3 complete. On the November chart support is the 200-day at $9.10 with the 20-day above the market $9.26, which we failed to hold Friday. WHEAT Wheat trade is 4 to 6 cents lower with Chicago trade the downside leader to start with light spillover from corn this a.m. The Chicago/Kansas City December spread is 94 cents slightly narrowing trade to start the week. The corn/HRW spread has widened 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 near term. Weekly export inspections improved to 523,262 metric tons, with weekly crop progress showing winter wheat planting about done, and emergence near normal. The December Kansas City chart support is the 20-day at $4.17 with the 10-day at 4.24 which we tested but failed to hold with the upper Bollinger Band right at $4.35. 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.