DTN Midday Grain Comments     10/30 11:00

   Grains Mixed at Midday

   Corn is flat to 2 cents lower, soybeans are 1 to 2 cents higher, and wheat 
is 3 to 6 cents lower.

David M. Fiala
DTN Contributing Analyst

   The U.S. stock market is weaker with the Dow down 420. The dollar index is 8 
points lower. Interest rate products are lower. Energies are weaker with crude 
down $0.70. Livestock trade is mostly higher. Precious metals are mixed with 
gold up $13.00.

   CORN

   Corn trade is mixed with December flat to 2 cents lower as spread trade 
weakness heading towards the weekend. Ethanol margins remain stable with corn 
and energies fading this week with blender margins losing ground as unleaded 
approaches $1.00 on the board. Basis has seen some weakness as barge freight 
rallies. On the December contract resistance is the fresh high at $4.21 3/4 
with support the 20-day at $4.00 which we are just below at midday.

   SOYBEANS

   Soybean trade is 1 to 2 cents higher at midday with weaker spread action as 
the November contract goes into delivery with the export wire quieter this week 
with 121,500 metric tons announced to unknown this a.m. Meal is flat to $1.00 
lower and oil is 10 to 20 points higher. Brazil should continue to make 
planting progress with the better rains short term for most, while Argentina 
has seen a little more mixed weather and continued slow farmer movement. Basis 
remains strong as we continue to work to max out our logistics capacity to ship 
the needed export bushels. The January chart has resistance at the fresh high 
at 10.88 1/2 with support the 20-day at 10.57 which we are back below at midday.

   WHEAT

   Wheat trade is 2 to 7 cents lower with trade chopping around support levels 
and KC action leading so far with early strength fading. The near term weather 
pattern looks to warm up for the plains to support growth with moisture still 
short in many areas. 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 harvest expanding. Middle East buyers 
are becoming more active with tenders as well. KC is at a 61-cent discount to 
Chicago with spreads headed back to the lower end of the range, while 
Minneapolis is back to 51 cent discount with very active spread action on 
going. KC December chart resistance is the fresh high at $5.79 1/2, and support 
is the 20-day at $5.47 which we are now solidly below, then the lower Bollinger 
band at $5.18.

   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




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