DTN Midday Grain Comments 10/31 11:14

DTN Midday Grain Comments 10/31 11:14 All Grains Lower at Midday Broadly weaker trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow down 170. The dollar index is 30 lower. Interest rate products are weaker. Energies are weaker with crude down $0.99. Livestock trade is weaker. Precious metals are firmer with gold up 17.00. CORN Corn trade is 4 to 5 cents lower at midday with trade and demand concerns pushing us back from the reversal yesterday. Harvest should pick up momentum again as the midweek cold front exits. Ethanol margins narrowed with the firmer corn values and flat ethanol futures despite the stocks draw. 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. Weekly export sales improved a bit to 549,100 metric tons. 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 failed to hold this a.m., then the $4.01 area where we find the 200-day moving average and near the 2 1/2 month high. SOYBEANS Soybeans are 3 to 4 cents lower at midday with trade chopping around ahead of the November delivery period. Meal is flat to $1.00 lower and oil is 30 to 40 points lower. Crush margins remain solidly positive, along with trade oversold conditions in place for now. The real scored new highs again as the US gains export comptetitiveness. 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 with planting mostly caught up. Weekly export sales were mixed at 943,600 metric tons of soybeans, meal was 179,400 metric tons, and oil was 29,900. On the November chart support is the 200-day and lower Bollinger band at $9.10 with the 20-day above the market $9.26. WHEAT Wheat trade is 3 to 6 cents lower with trade breaking first support levels with spillover from row crops and little fresh news otherwise. The Chicago/Kansas City December spread is 91 cents slightly wider trade this a.m., and now about a dime from the recent highs. The corn/HRW spread has narrowed back to 25 cents, with wheat working more into rations with the break this week. 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 export sales were inline with expectations at 493,800 metric tons. The December Kansas City chart support is the 20-day at $4.18 which we have faded below then the lower Bollinger Band at $4.01 below that 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.