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DTN Midday Grain Comments     10/21 11:34

   Corn, Beans Trending Higher at Midday

   Row crop trade is higher at midday, wheat flat to lower with sideways 

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are mostly lower with the DOW 90 points lower. 
The interest rate products are mostly lower. The dollar index is 40 points 
higher. Energies are mixed with crude down .20. Livestock trade is firm with 
cattle sharply higher. Precious metals are lower with gold down $.60.  


   Corn trade is 1 to 2 cents higher at midday with light end user buying; 
overall we have a very slow session so far with only a 3 cent trading range. 
December futures held at support, the $3.50 level, after the down day yesterday 
which market longs are happy about. Ethanol margins should remain stable and 
positive going into the weekend, with basis pressure from harvest adding a 
boost in some areas, along with ethanol futures edging higher this morning. The 
weather forecast may bring a slower pace in the near term if some of the rains 
materialize. On the December contract chart support is at $3.50 with the 10-day 
at $3.49 below there. Resistance is at the $3.59 1/4 a 3-month high printed 
yesterday than the $3.63 100-day followed by the 200-day at $3.73. Expect 
sizeable sell stops below the $3.49-50 area if we see any pressure this 


   Soybean trade is 3 to 8 cents higher at midday with trade trying to 
consolidate above the $9.78 area of the 200-day moving average going into the 
weekend. Meal is $2 to $3 higher and oil is 5 to 15 points higher. Harvest 
pressure should continue into the weekend but remaining acres could be slowed a 
bit after that. Basis will remain soft into the weekend, but next week the 
pressure should start to fade with harvest in the home stretch. Brazilian 
weather has improved as planting progresses. On the November soybean chart 
support is the $9.70 50-day, then the $9.59 20-day. Resistance is at the $9.89 
3/4 high reached earlier then $10, then the 100-day up at $10.25.  


   Wheat trade is 1 to 4 cents lower with firmer row crops trade and the 
stronger dollar at the end of the week, along with a slightly better chart 
picture. The dollar made five-month highs today, with Russia still the cheapest 
origin for the key importing nations, although the U.S. did find some business 
on the daily wire yesterday. Weather concerns may build with the reduced 
acreage in the U.S., and dry weather at emergence for a chunk of the western 
belt but the extended forecast offers some hope for rain as above-normal 
temperatures continue. On the Kansas City December chart, support is the 50-day 
at $4.19 then the 20-day at $4.13. Resistance is at the $4.29 upper Bollinger 
Band then the August $4.49 3/4 high.  

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered Advisor.
He can be reached at 
Follow Fiala on Twitter @davidfiala


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