DTN Midday Grain Comments 10/27 10:50

DTN Midday Grain Comments 10/27 10:50 Corn Futures Lower at Midday; Soybeans Mixed; Wheat Flat-Lower Corn futures are 3 to 4 cents lower at midday Thursday; soybean futures are narrowly mixed; wheat futures are flat to 6 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents lower at midday Thursday; soybean futures are narrowly mixed; wheat futures are flat to 6 cents lower. The U.S. stock market is mostly higher with the DOW up 320 points. The U.S. Dollar Index is 50 points higher. Interest rate products are firmer. Energies are mostly higher with crude up 1.60 and natural gas unchanged. Livestock trade is weaker with hogs the downside leader. Precious metals are mixed with gold off $4.00. CORN: Corn futures are 3 to 4 cents lower at midday with early gains fading after as export sales disappointed and little other fresh news emerged to push action. Ethanol margins should remain stable near term with unleaded strength boosting blender margins, while natural gas firming tightens producer margins. 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 needed to boost the river system with some signs of progress seen. The daily export wire has remained quiet. Weekly export sales were disappointing again at 264,000 metric tons (mt). On the December chart, trade is just below the 20-day moving average at $6.85 after closing above it Wednesday, with the lower Bollinger Band at $6.70 as further support. Further resistance is at the $6.98 upper Bollinger Band. SOYBEANS: Soybean futures are narrowly mixed with early strength fading again as range-bound trade continues. Oil is fading from recent highs as meal firms and other fresh news remains limited. Meal is $4.50 to $5.00 higher, and oil is 105 to 115 points lower. South America should see adequate moisture for the most part as planting pushes forward with some concern about the second week. Basis will likely continue to see harvest pressure, although that should start to ease with the west showing strength while building cash and board carries east will stay in place until the river issues fully resolve. Trade will be looking for confirmation of further export sales with nothing so far this week. Weekly sales were OK at 1.03 million metric tons (mmt), with meal at 217,200 mt, and oil at 2,500. On the November chart, the lower Bollinger Band at $13.55 will remain support with trade just above the 20-day moving average at $13.79; the upper Bollinger Band at $14.00 is the next round up. WHEAT: Wheat futures are flat to 6 cents lower with early gains fading as the dollar firms and little other fresh news as we stay in the lower end of the recent range. Spring wheat retook the lead this morning with contract spreads firm even as we fade. Fresh political developments were limited last week as well with Ukraine shipping corridor renewal approaching quickly. Continued weakness in the dollar should add some support as well. The Plains continue to look dry in the short term except for the east. Weekly export sales were good at 533,200 mt. On the chart, KC December action has support at $9.18 on the lower Bollinger Band, which we continue to work just above, with the 20-day tracking above the market at $9.66. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.