DTN Midday Grain Comments 10/04 11:11

DTN Midday Grain Comments 10/04 11:11 All Grains Lower at Midday Trade is lower across the board at midday, led by wheat. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher; the Dow futures are up 30. The interest rate products are lower. The dollar index is 8 lower. Energies are narrowly mixed. Livestock trade is mostly higher. Precious metals are flat with gold 3.20 higher. CORN Corn trade is 2 to 4 cents lower at midday with trade marking the lowest level since the end of August. Harvest pressure continues to weigh on the market with the slowing harvest pace having little impact so far. The weekly ethanol report showed production slightly higher, up 14,000 barrels per day, with stocks 805,000 barrels higher, which has ethanol down at the lower end of the range. The USDA monthly report is due out next Thursday which will also be a reminder of the large supply side items. Demand needs to remain strong; lower prices should also be encouraging usage. On the December chart support is at the $3.44 1/4 contract low with resistance at the $3.58 3-week high printed Friday. SOYBEANS Soybean trade flat to 2 cents lower at midday with trade seeing a very narrow range overnight compared to recent days of 4 cents. Meal is .50 to $1.50 lower and oil is 20 to 30 higher. Harvest yield news should give the market direction this week; we have slipped to a new three-week low yesterday but remain around the middle of our 2-month range. South American planting should improve into the beginning of October with the near-term pattern continuing with most of the dryness in northeastern Brazil for now. The daily wire will continue to be watched for activity with activity slowing a bit in recent days. On the November chart, the recent $9.37 low remains chart support, with the 20-day at $9.65 nearby resistance. WHEAT Wheat trade is 2 to 6 cents lower at midday with the momentum fading from the bounce yesterday with little fresh news to push the market. The dollar rally continues to fade but the index remains above 93. U.S. export business will continue to be at a disadvantage in the near term with Black Sea origin winning the tender, albeit at slightly higher prices. Australia continues to see some weather struggles as its weather season moves forward. Rains across Kansas should boost planting progress, even as it remains behind normal. On the December Kansas City support is the contract low at $4.20 with the 20-day at $4.45 resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.