DTN Midday Grain Comments 10/29 11:09

DTN Midday Grain Comments 10/29 11:09 Grains Mixed at Midday Corn and wheat firmer at midday, soybeans weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is mixed with the Dow up 30. The dollar index is 8 lower. Interest rate products are weaker. Energies are weaker with crude down $0.50. Livestock trade is weaker. Precious metals are weaker with gold down 8.10. CORN Corn trade is flat to 1 cent higher with trade staying at the lower end of the recent range in limited action so far. Harvest will likely be slowed with the cold front moving into the bulk of the belt the first half of the week with many areas seeing snow. Ethanol margins remain stable with futures staying flat to lower. Basis should see more pressure this week as the bushels accumulate. South America looks to remain in the same weather pattern for now as planting continues with dry pockets persisting. Some Brazilian corn has been moving to Mexico with the U.S. uncompetitive on the world market. Weekly crop progress showed conditions improved at 58% good to excellent, 12% poor to very, with harvest at 41% vs. 61% on average, and maturity at 93% vs. 99% average. On the December contract support is the recent low at $3.82, then the 50-day at 3.77 the next level of support with trade nearing oversold conditions. Chart resistance is at the 20-day at $3.89. SOYBEANS Soybeans are 3 to 5 cents lower with harvest pressure and long liquidation ahead of the November contract going into delivery weighing on trade after some early two-sided traded. Meal is $0.50 to $1.50 lower and oil is 5 to 15 points higher. Crush margins remain solidly positive, along with trade backing off overbought conditions with the break, which should help to build support as we pull back. The real scored new highs to start the week 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 crop progress showed harvest at 62% vs. 78% on average. 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 again on Monday. WHEAT Wheat trade is 1 cent lower to 3 cents higher with trade finding some light buying this morning as it tries to hold the lower end of the range. The Chicago/Kansas City December spread is 95 cents slightly narrowing trade to start the week. The corn/HRW spread has narrowed back to 35 cents at midday, with wheat still on the edge of rations. Export action continues to be dominated by Black Sea origin with Egypt active, but their prices have firmed while Australia remains dry near term. Weekly crop progress showing winter wheat 85% drilled vs. 82% on average, with 63% emerged vs. 64% on average and initial conditions 56% good to excellent vs. 13% poor to very poor. The December Kansas City chart support is the 20-day at $4.16 with the 10-day at 4.24 which we are tested but failed to hold with the upper Bollinger Band right at $4.36. 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.