DTN Midday Grain Comments 10/14 10:46

DTN Midday Grain Comments 10/14 10:46 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 4 to 5 cents lower at midday Friday; soybean futures are 6 to 8 cents lower; wheat futures are 10 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 to 5 cents lower at midday Friday; soybean futures are 6 to 8 cents lower; wheat futures are 10 to 18 cents lower. The U.S. stock market is weaker with the DOW down 115 points. The U.S. Dollar Index is 65 points higher. Interest rate products are weaker. Energies are weaker with crude down 3.10, and natural gas is off .20. Livestock trade is mixed with hogs leading. Precious metals are weaker with gold 21.00 lower. CORN: Corn futures are 4 to 5 cents lower at midday with trade continuing to chop around the upper end of the range with harvest pressure and little other fresh news as we put the WASDE and inflation report action behind us. Short-term forecasts have the center of the belt drier with moderating temps to keep harvest moving along into mid-month with drier weather returning into next week. The export wire will need to show more life soon with nothing in recent days. River issues are limiting exports, short term, and weekly sales remain disappointing at 200,200 metric tons (mt) for this year, and 60,500 mt for next. Ethanol margins will likely chop along with softer driving demand and refinery disruptions to keep upside limited and production likely soft for the balance of the month. Basis will continue to see harvest and shipping pressure in the middle of the belt while bushels are bid for in the east. On the December chart, trade is just below the upper Bollinger Band at $7.02 with the 20-day moving average below that at $6.82. SOYBEANS: Soybean futures are 6 to 8 cents lower with trade failing to hold above $14.00 nearby even as the strong recent export pace continues with outside markets, shipping concerns, and harvest pressure continuing to limit upside. Meal is $1.00 to $2.00 higher and oil is 70 to 80 points lower. South America has early planting underway with mixed overall conditions -- better in Brazil to start. The U.S. dollar will likely remain a limiting factor, short term, but we did see China secure another 392,000 mt Friday with 198,000 mt to unknown as well as 230,000 mt of meal to the Philippines. Weekly export sales are still tepid at 724,400 mt of soybeans, -99,900 mt of old-crop meal, with new crop 491,900 mt, with oil at -10,100 of old, and 3,300 of new. Basis will likely see further pressure as shipping issues and rising carry limit the need of processers to be aggressive even with solid crush margins. On the November soybean chart, trade has the 20-day moving average at $14.04 as resistance, which we remain just below, with the lower Bollinger band at $13.33 as support, which we have held solidly above. WHEAT: Wheat futures are 10 to 18 cents lower at midday with trade remaining actively rangebound as we wait for grain corridor issues to clarify, along with U.S. winter wheat planting and emergence. Southern Hemisphere crop progress with potential quality issues in Australia and crop losses in Argentina along with the strong dollar are limiting upside. The Plains look dry short term, with further planting to continue with emergence likely to struggle in many areas into the second half of the month. MATIF wheat scored fresh highs for the move as well before fading back into the recent range. Wheat export sales were soft at 211,800 mt. The KC December chart has support at the 20-day moving average at $9.71, which we are just above below at midday, with further support the lower Bollinger band at $9.22. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.