DTN Midday Grain Comments 10/13 11:32

DTN Midday Grain Comments 10/13 11:32 Grains Trending Higher at Midday November beans are flirting with $10.00 at midday in slow trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is flat to higher this morning with the Dow up 25 points. The interest rate products are higher. The dollar index is 8 lower. Energies are higher with crude up $.70. Livestock trade is mostly higher. Precious metals are higher with gold up $5.90. CORN Corn trade is 2 cents higher at midday with light buying through the early part of the day and spillover support from beans keeping corn positive. Ethanol margins are flat this morning with corn and ethanol futures slightly higher. Another batch of storms will limit near term progress in the west/central parts of the belt but it should open up more after that. The WADSE report was a mixed bag for corn with yield up 1.9 at 171.8 BPA, 14.28 billion production up 96 from last month, harvested acres down 400,000, carryout up 5 million to 2.340 billion, with world stocks down 1.5 to 201 million metric tons. The weekly export sales were strong at 1.59 million metric tons. On the December chart support is at the fresh contract low made Thursday at $3.42 1/4 with resistance at the $3.58 three-week high and 50-day moving average. SOYBEANS Soybean trade is 4 to 6 cents higher at midday with nearby trade testing the $10.00 level. Meal is $1 to $2 higher and bean oil is 35 to 45 points higher. The WASDE report increased harvested acres 800,000, reduced yield 0.4 to 49.5 BPA, production unchanged at 4.431 billion bushels, carryout at 430 million bushels, down 45 million, and world stocks down 1.4 million metric tons to 96.1 to one. South American weather forecasts remains mixed with drier weather expected for Argentina to allow planting to progress while northern Brazil remains excessively dry for the early part of the growing season. The weekly export sales were good at 1.75 million metric tons, meal at 86,500 metric tons net, and 12,600 of oil net. On the November chart, trade is above all the major moving averages, with the 200-day at $9.75 first support, with resistance the recent high at $10.00. Activity should pick-up this afternoon with short covering or long profit taking occurring. WHEAT Wheat trade is flat to 3 cents higher at midday with trade trying to follow row crop strength with light short covering. The dollar continues to hang just below the 93 level on the index. US export business will continue to be at a disadvantage in the near term with Black Sea origins continuing to dominate with Russia working to boost logistics capacity coming forward with another poor week of export sales at 175,000 metric tons. Australia will see more focus coming forward as well. The WASDE report showed carryout up 27 million bushels to 960 million with world stocks up 5 million metric tons to 263.1 metric tons. On the December Kansas City support is the contract low at $4.20 with the 10-day at $4.33 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.