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DTN Midday Grain Comments 10/19 10:59

19 Oct 2022
DTN Midday Grain Comments 10/19 10:59 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 5 to 6 cents lower at midday Wednesday; soybean futures are 6 to 8 cents lower; wheat futures are 3 to 12 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 6 cents lower at midday Wednesday; soybean futures are 6 to 8 cents lower; wheat futures are 3 to 12 cents lower. The U.S. stock market is mixed with the DOW up 5 points. The U.S. Dollar Index is 70 points higher. Interest rate products are weaker. Energies are mixed with crude up 40 cents. Livestock trade is higher. Precious metals are weaker with gold off $20. CORN: Corn futures are 5 to 6 cents lower at midday with trade continuing to fade into the lower end of the recent range with harvest continuing along with soft nearby demand and outside market headwinds. The weekly ethanol report showed production edging up 84,000 barrels per day (bpd), with stocks off 19,000 barrels. Wetter weather to the east could slow harvest progress toward the weekend. Basis will likely remain mixed with river issues persisting while the market works to move bushels west. The export wire has remained quiet as well. On the December chart, trade is just below the 20-day moving average at $6.81 with the lower Bollinger Band at $6.63 further support. Further resistance is at the $6.88 10-day moving average, then the $7.00 upper Bollinger Band. SOYBEANS: Soybean futures are 6 to 8 cents lower at midday with trade continuing to fade into the lower end of the range with bullish news limited as harvest presses on with shipping and demand concerns lingering, while South America continues to make early season progress. Meal is $1.50 to $2.50 lower and oil is 55 to 65 points higher. South America should see relief in some of the drier areas short term as planting pushes forward. Basis will likely continue to see harvest pressure and building cash and board carries with the river issues, along with the stronger dollar likely limiting export interest short term with the wire quiet this week. On the November chart, the lower Bollinger Band at $13.39 will remain support with the 20-day moving averae tracking solidly above the market at $13.89. WHEAT: Wheat futures are 3 to 12 cents lower with trade fading back off the early strength to continue to work the lower end of the range as we wait to see how Plains weather develops, along with further political developments on grain shipping short term. Spring trade is trying to lead with spread action trying to firm a little amid the board weakness. The dollar remaining near the upper end of the range will likely continue to limit upside as well. On the chart, KC December action has support at $9.26 on the lower Bollinger Band, which we tested Tuesday, with the 20-day moving average tracking above the market at $9.70. ** This year's DTN Ag Summit will be conducted virtually on the mornings of Dec. 12-13, 2022. Please join us for DTN Lead Analyst Todd Hultman's insights into how long these high crop prices will last and what to watch for in the year ahead. Full details available at http://www.dtn.com/agsummit David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.