DTN Midday Grain Comments 10/29 11:23

DTN Midday Grain Comments 10/29 11:23 Grains Mixed at Midday Corn is narrowly mixed, soybeans are narrowly mixed, and wheat is 2 cents lower to 2 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 40. The dollar index is 60 points higher. Interest rate products are lower. Energies are weaker with crude down $1.30. Livestock trade is mixed. Precious metals are mixed with gold down $8.00. CORN Corn trade is narrowly mixed with trade extending weakness before finding two-sided action at midday with sales of 1.4325 million metric tons to Mexico split between old and new crop with another 140,000 to unknown. Ethanol margins remain stable with corn and energies failing. Basis will likely remain solid with snow slowing harvest. Weekly export sales were strong at 2.24 million metric tons. On the December contract resistance is the fresh high at $4.21 3/4 with support the 20-day at $3.99 which we bounced back above at midday. SOYBEANS Soybean trade is narrowly mixed with two sided action and firmer spread action at midday. Meal is $1.50 to $2.50 higher and oil is 30 to 40 points lower. Brazil should continue to make planting progress with the better rains short term for most, while Argentina continues to remain slow in moving soybeans to crushers as their currency remains at the low end of the range supporting the holding of stocks as a dollar hedge especially with the dollar strength this week. Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels. Weekly export sales remain solid at 1.62 million metric ton range, with 199,300 of meal, and 6,000 of oil. The November chart has resistance at the fresh high at 10.94 with support the 20-day at 10.55 which we are holding at midday. WHEAT Wheat trade is 2 cents lower to 2 cents higher with trade chopping around support levels. The near term weather pattern looks to warm for the plains to support growth. The ruble action continues to favor Russia a bit in the export markets but their domestic prices are now elevated but with improved short term weather, along with Australia harvesting more. Middle East buyers are becoming more active with tenders as well. Kansas City is at a 63-cent discount to Chicago with spreads back to the recent highs again before reversing, while Minneapolis is back to 53 cent discount with very active spread action on going. Weekly export sales at 743,200 metric. Kansas City December chart resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.42 which we are just below overnight, then the lower Bollinger Band at $5.12. 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 (c) Copyright 2020 DTN, LLC. All rights reserved.