DTN Midday Grain Comments 10/06 10:51

DTN Midday Grain Comments 10/06 10:51 Grain Futures in the Red Midday Thursday Corn trade is 8 to 9 cents lower; beans are 14 to 16 cents lower and wheat is 14 to 22 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 8 to 9 cents lower; beans are 14 to 16 cents lower and wheat is 14 to 22 cents lower. The U.S. stock market is weaker with the Dow down 110 points. The U.S. Dollar Index is 0.75 higher. Interest rate products are weaker. Energies are firmer with crude up $0.90, and natural gas is up $0.14. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold unchanged. CORN: Corn trade is 8 to 9 cents lower at midday Thursday with broad grain weakness Thursday morning weighing during the day session with harvest pressure, lackluster demand and the stronger dollar limiting upside. Short-term forecasts have the center of the belt drier with moderating temps to keep harvest moving along into mid-month. The export wire will need to show more life soon with nothing in recent days with river issues remaining notable for shipping with weekly sales disappointing at 227,000 metric tons. Ethanol margins will likely chop along with softer driving demand and refinery disruptions to keep upside limited for now, but the recent stocks draw down will add support. Basis will be watched to see how long we stay on harvest footing, and how aggressively the west will bid for corn in the deficit areas into early harvest with notable strength already while intramonth spreads remain off the highs as shipping issues will limit the export market. On the December chart, trade is just below the 20-day at $6.79 with the recent high at $6.95 above that with the lower Bollinger Band at $6.65 as further support. SOYBEANS: Soybean trade is 14 to 16 cents lower at midday with trade fading back to the lower end of the range again with harvest pressure and demand concerns continuing to limit upside. Meal is $4.00 to $5.00 lower, and oil is 0.35 cent to 0.55 cent higher. South America has early planting underway with mixed overall conditions and better in Brazil to start, while the U.S. dollar and shipping issues limit U.S. export interest with weekly export sales uneventful with 777,100 metric tons of beans, 19.500 of old crop meal, and 139,900 of new, and 900 of old crop soy oil and 100 of new. Basis will continue to shift toward harvest footing with trade watching to see how quickly export shipments pick up into the end of the month with some further near-term basis pressure expected through midmonth along with intramonth spread weakness adding carry in recent days along with areas of significant cash carry in river areas. On the November soybean chart, trade has the 20-day at $14.25 as resistance well above the market, with the lower Bollinger Band at $13.49 as support, which we have held above so far Thursday. WHEAT: Wheat trade is 14 to 22 cents lower at midday with spring wheat trade holding up the best with spread unwinding between contracts while the stronger dollar, and a lack of fresh news encouraging profit taking after trade was unable to hold the highs to start the week. The Plains look dry short term, but enough recent rains fell in some areas to keep planting moving forward short term. MATIF wheat remains near the upper end of the range with weaker action so far today as well. Weekly export sales were a bit soft at 229,400 metric tons. The KC December chart has support at the 20-day at $9.56, and the fresh high at $10.09 as resistance which we failed at earlier in the week. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.