DTN Midday Grain Comments 10/31 11:07

DTN Midday Grain Comments 10/31 11:07 Corn, Wheat Lower at Midday Winter wheat scores new lows this morning, with row crops mixed. 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 mostly lower. The dollar index is 5 higher. Energies are mixed with crude down 0.05. Livestock trade is higher, led by cattle. Precious metals are lower with gold down $6.60. CORN Corn trade is 2 to 3 cents lower at midday with trade moving back to the lower end of the range. Ethanol margins are stable with the recent sideways action. Harvest progress should continue with the west remaining the most open, with the east still slowed by lingering wetness issues. The winds are causing some field loss which should help to limit selling in the near term. The weekly crop progress report had harvest at 54% complete, 18% behind the 5-year average. Crop conditions were left unchanged at 66% good to excellent on likely the last condition number of the year. Basis and carry remain soft with harvest pressure still making their presence felt. On the December chart support is at the $3.42 1/2 low with resistance at the $3.52 50-day moving average then the $3.58 six-week high. SOYBEANS Soybean trade is 1 to 5 cents higher in quiet midday trade with the January contract staying right around $9.85. Meal is flat to $1 higher and oil is flat to 10 points higher. South American weather looks wetter for much of Brazil with parts of Argentina starting to dry out after a wet start with planting moving forward. Soybean basis has remained mostly steady with carry steady with harvest likely getting towards the very end this week. The weekly crop progress report had harvest at 83% complete, 1 percentage point behind average. The daily export wire will be watched closely with overnight strength not resulting in announced sales in recent days. On the January chart, the 200-day at $9.82 is support and resistance at the 10-day at $9.88, which we are just below at midday. WHEAT Wheat trade has made new lows for winter wheat down 6 to 9 cents with spring wheat down 2 to 5 cents with heavier selling from the open of the day session. The dollar has pulled back from the 95 area on the index, but remains at the upper end of the recent range. US exports have been slowed lately as Black Sea origin continues to dominate world movement in the near term, with the dollar hurting U.S. competitiveness, but we did see a 100,000 metric ton sale to Iraq of hard red wheat. The southern hemisphere crop will continued to be watched with wet weather hitting the flood damaged areas again, which has Brazil set to be an importer again. Australia will continue to draw more attention coming forward as well, with the winter wheat areas of the Black Sea off to a generally dry start. The winter wheat planting progress was at 84% planted, 3 percentage point behind average, and emergence at 65% emerged, 3% behind average. The initial crop condition report had 51% rated good to excellent, and 13% poor to very poor versus last year when only 9% was poor to very poor and 58% good to excellent. On the December Kansas City support is at the $4.14 low scored this morning with resistance the 20-day at $4.29. 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.