DTN Midday Grain Comments 10/27 11:20

DTN Midday Grain Comments 10/27 11:20 Grains Are Mixed at Midday Soybeans are clinging to small gains at midday, corn and wheat weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer this morning with the Dow up 25 points. The interest rate products are firmer. The dollar index is 40 higher. Energies are mostly higher with crude up $1.10. Livestock trade is lower. Precious metals are mixed with gold up $1.00. CORN Corn trade is 1 to 3 cents lower at midday with trade drifting below the $3.50 area with weakness during the day session. Ethanol margins remain range bound with lower levels of exports the biggest near term concern with futures edging slightly higher. Basis should see harvest pressure while carry remains wide, but stable heading towards another weekend of harvest pressure. Weather looks to remain open for the west with the east still slow as cooler temperatures move in. The USDA announced 132,000 metric tons of corn sold to Spain. On the December chart support is at the $3.42 1/2 low with resistance at the $3.53 50-day moving average which we tested this morning then the $3.58 6-week high. SOYBEANS Soybean trade is flat to 3 cents higher at midday with the January contract holding above $9.80 as it becomes the front month. Meal is narrowly mixed and oil is 10 to 20 points higher. South American weather is expected to ease the drier areas in next week days as planting progresses, limiting buying enthusiasm with harvest on the home stretch in the United States. Soybean basis has remained mostly steady with carry steady. The daily export wire has been quiet this week, but China returned today with 238,000 metric tons sold to China. On the January chart, the 200-day at $9.82 is support support and resistance at the 10-day at $9.90. WHEAT Wheat trade is 3 to 7 cents lower across the three contracts at midday with the dollar spike returning selling pressure to the wheat complex. The dollar is back near 95 with gains being extended on continued Euro stimulus. U.S. exports have been slowed lately as Black Sea origin continues to dominate world movement in the near term, with the dollar hurting US competitiveness. The Southern Hemisphere crop will continued to be watched with drier weather replacing floods in South America near term. Planting progress should be nearing the end with the more open weather, with early stands good with wet conditions still slowing action in South Central Kansas. On the December Kansas City support is at the $4.20 low with resistance the 50-day at $4.38. 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.