DTN Midday Grain Comments 10/25 10:49

DTN Midday Grain Comments 10/25 10:49 Corn, Soybean Futures Higher at Midday; Wheat Lower Corn futures are 3 to 4 cents higher at midday Tuesday; soybean futures are 10 to 12 cents higher; wheat futures are 7 to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents higher at midday Tuesday; soybean futures are 10 to 12 cents higher; wheat futures are 7 to 9 cents lower. The U.S. stock market is firmer with the DOW up 240 points. The U.S. Dollar Index is 110 points lower. Interest rate products are firmer. Energies are firmer with crude up .65 cents and natural gas up .25. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up $5.80. CORN: Corn futures are 3 to 4 cents higher with trade continuing to chop along in the range, unable to sustain strength or weakness with little fresh news besides some river improvement. Ethanol margins should remain stable near term with driving demand worries to continue to linger into fall, while cheaper natural gas can help to boost margins if sustained with action still well off the highs with the recent rally. Wetter weather to the east could slow harvest progress short term while the west wraps up amid poor conditions and limited potential for immediate application of fall fertilizer except for irrigated ground. Basis will likely remain mixed with river issues persisting while the market works to move bushels west with rains needing to perform to boost the river system. The daily export wire has remained quiet. Weekly USDA Crop Progress showed harvest 61% complete versus 52% on average. On the December chart, trade is just above the 20-day moving average at $6.83 after closing above it Friday with the lower Bollinger Band at $6.68 further support. Further resistance is at the $6.98 upper Bollinger Band. SOYBEANS: Soybean futures are 10 to 12 cents higher with trade popping back toward resistance on optimism about better river shipping progress and the weaker dollar to bolster demand. Meal is $5.50 to $6.50 higher, and oil is flat to 10 points higher. South America should see adequate moisture for the most part short term as planting pushes forward. Basis will likely continue to see harvest pressure, although that should start to ease soon while building cash and board carries until the river issues fully resolve. Trade will be looking for confirmation of further export sales with nothing so far this week. Harvest heads toward the homestretch with 80% complete versus 67% on average. On the November chart, the lower Bollinger Band at $13.53 will remain support with trade just above the 20-day moving average at $13.81 after closing above it Friday and fading Monday with the upper Bollinger Band at $14.10 the next round up. WHEAT: Wheat futures are 7 to 9 cents lower at midday with trade fading back to the lower end of the range with spread unwinding and little fresh bullish news beside the dollar fading to encourage buying. Spring wheat trade has been trying to lead in recent days with contract spreads flat for the most part. Fresh political developments were limited last week with Ukraine shipping corridor renewal approaching quickly. The Plains continue to look dry in the short term except for the east. Weekly USDA Crop Progress at 79% planted versus 78% on average, and 49% emerged versus 56% on average with first crop conditions likely released next week. On the chart, KC December action has support at $9.22 on the lower Bollinger Band, which we tested overnight, with the 20-day moving average 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.