DTN Midday Grain Comments 10/20 10:51

DTN Midday Grain Comments 10/20 10:51 Corn, Soybean Wheat Futures Higher at Midday Corn futures are 5 to 6 cents higher at midday Thursday; soybean futures are 12 to 14 cents higher; wheat futures are 7 to 9 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 6 cents higher at midday Thursday; soybean futures are 12 to 14 cents higher; wheat futures are 7 to 9 cents higher. The U.S. stock market is firmer with the DOW up 235 points. The U.S. Dollar Index is 60 points lower. Interest rate products are weaker. Energies are mixed with crude up 1.70 cents. Livestock trade is mostly lower. Precious metals are firmer with gold up $14. CORN: Corn futures are 5 to 6 cents higher at midday with choppy action continuing. There is little fresh news to push trade to either end of the range as harvest rolls on and exports continue to disappoint. Ethanol margins should remain stable near term with driving demand worries to continue to linger into fall. Wetter weather to the east could slow harvest progress toward the weekend with the west continuing to move along quickly. 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 with weekly sales remaining soft at 408,300 metric tons (mt). On the December chart, trade is just above the 20-day moving average at $6.81 with the lower Bollinger Band at $6.63 further support. Further resistance is at the $7.00 upper Bollinger Band. SOYBEANS: Soybean futures are 12 to 14 cents higher at midday with trade working on extending the reversal scored Wednesday. We are likely to see harvest pressure ease further along with talk of daily export bookings with 201,000 mt announced to China, and 132,000 mt to unknown. Meal is $8.50 to $9.50 higher, and oil is 30 to 40 points lower. 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 weaker dollar overnight possibly boosting export interest short term if sustained. Weekly export sales were strong at 2.34 million metric tons (mmt) of soybeans; 542,300 mt of meal; and 9,700 of oil. On the November chart, the lower Bollinger Band at $13.49 will remain support with trade trying to edge above the 20-day moving average at $13.89. WHEAT: Wheat futures are 7 to 9 cents higher at midday with trade continuing the recent pattern of overnight strength on political talk. But we need to finish a session strong to rebuild momentum to the upside short term with gains holding after some early two-sided action. Spring wheat trade is trying to lead with spread action trying to firm a little through midweek. The dollar remaining near the upper of the range will likely continue to limit upside as well with Thursday's weakness needing to be sustained. The Plains continue to look dry in the short term. Weekly export sales remain soft at 163,100 mt old, and 22,000 mt new. On the chart, KC December action has support at $9.22 on the lower Bollinger Band which we tested Wednesday, with the 20-day tracking above the market at $9.68. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.