DTN Midday Grain Comments 10/05 10:53

DTN Midday Grain Comments 10/05 10:53 Soybean Futures Up Double Digits Midday Tuesday Corn is narrowly mixed, soybeans are 16 to 18 cents higher and wheat is 3 to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow up 420 points. The U.S. Dollar Index is 0.07 higher. Interest rate products are lower. Energies are firmer with crude up $1.80. Livestock trade is mixed with cattle leading. Precious metals are weaker with gold down $10.00. CORN: Corn trade is narrowly mixed at midday Tuesday with trade fading back towards the middle of the range with harvest pressure and spillover weakness from the wheat pit. Ethanol margins will continue to struggle with natural gas values and soft driving demand short term, albeit with tight stocks. South America will continue with early full-season corn planting and little weather concerns there so far while we head to the middle stretch of harvest in the U.S. Corn basis should remain flat to weaker near term with ethanol and export demand still soft short term. The weekly crop report saw steady conditions at 59% good to excellent and 15% poor to very poor with maturity at 88% mature versus 77% on average and harvest at 29% versus 22% on average. On the December contract, we have support at the 20-day at $5.27 with the upper Bollinger Band at $5.47, the next level of resistance that we have faded back from. SOYBEANS: Soybeans are 16 to 18 cents higher at midday as trade reverses off the fresh lows scored early in the session and short covering and spread unwinding so far. Meal is $1.50 to $2.50 lower and oil was 2.45 cents to 2.60 cents higher. Harvest should continue to expand with weather continuing to push maturity along with a broad yield trend to be clear by the end of the week. Basis levels have been flat to weaker in recent days. South American planting will get more attention into the end of the month as well, as action scales up with a mixed short-term forecast remaining in place. Weekly crop progress showed steady conditions at 58% good to excellent and 14% poor to very poor with 86% dropping leaves versus 80% on average and 34% harvested versus 26% on average. On the November soybean chart, resistance is at the 20-day at $12.76 with support the fresh low at $12.31. WHEAT: Wheat trade is 3 to 9 cents lower with trade fading back from the top of the range as the euro short squeeze eases with little other fresh news to push trade higher. The dollar has faded below 94 points on the index but remains at the upper end of the range with light strength this morning. KC is at a 6-cent discount to Chicago with weaker action Tuesday, with Minneapolis at a 176-cent premium in firmer action. Weather in the Plains looks open short term as planting expands with little fresh news on Southern Hemisphere weather so far, and planting progress at 47% versus 46% on average and emerged at 19% versus 20%. KC December on the chart has support at the 20-day at $7.13, then resistance at the fresh high of $7.64 then the contract high at $7.69 from this summer. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.