DTN Midday Grain Comments 10/30 11:11

DTN Midday Grain Comments 10/30 11:11 Row Crops Slightly Firmer at Midday; Wheat Lags Corn is 2 to 3 cents higher, soybeans are 1 to 2 cents higher and wheat is flat to 2 cents lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow down 25. The dollar index is 4 lower. Interest rate products are weaker. Energies are weaker with crude down 0.65. Livestock trade is firmer. Precious metals are mixed with gold up $5.40. CORN Corn trade is 2 to 3 cents higher at midday with mixed to higher trade overnight up to midday with follow-through buying after the positive turnaround Tuesday. Harvest will likely be slowed with the cold front bringing snow into much of the Corn Belt through midweek. Weekly ethanol production got back over a million barrels per day, up 8,000 per day, with stocks 265,000 barrels lower, marking a new two-year low. 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. On the December contract, support is the recent low at $3.82, then the lower Bollinger band the next level of support at $3.80 with trade nearing oversold conditions. Chart resistance is at the 20-day at $3.89, which we have been flirting with, then the $4.01 area where we find the 200-day moving average and near the 2 1/2-month high. SOYBEANS Soybeans are flat to 2 cents higher with two-sided trade continuing as soybeans try to carve out support ahead of the November contract going into delivery on Friday. Meal is flat to $1.00 lower, and oil is 10 to 20 points higher. USDA announced 132,000 metric tons of soybeans sold to Mexico. 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, and remains at the upper end of the range, 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. On the November chart, support is the 200-day and the lower Bollinger band at $9.10 with the 20-day above the market $9.26. WHEAT Wheat trade is flat to 2 cents lower with trade remaining at the lower end of the range but continuing to hold support so far. The Chicago/KC December spread is 91 cents, slightly narrowing trade to start the week, and now about a dime from the recent highs. The corn/hard red winter wheat spread has narrowed back to 35 cents, 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. The December KC chart support is the 20-day at $4.18 with the upper Bollinger band at $4.24 as 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 (CZ) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.