DTN Midday Grain Comments 10/28 10:49

DTN Midday Grain Comments 10/28 10:49 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 4 to 5 cents lower at midday Friday; soybean futures are 4 to 5 cents lower; wheat futures are 9 to 14 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 to 5 cents lower at midday Friday; soybean futures are 4 to 5 cents lower; wheat futures are 9 to 14 cents lower. The U.S. stock market is firmer with the DOW up 565 points. The U.S. Dollar Index is 30 points higher. Interest rate products are weaker. Energies are weaker with crude off 1.70 and natural gas off 30 cents. Livestock trade is mixed. Precious metals are weaker with gold off $23.00. CORN: Corn futures are 4 to 5 cents lower at midday with trade fading back toward the lower end of the range with moderate risk-off action as we head toward the weekend. Ethanol margins should remain stable near term with unleaded strength boosting blender margins, while natural gas fading boosts producer margins. Harvest should continue to push toward the homestretch with some fall fertilizer applications underway, although conditions will need to improve for broader progress. 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 with some signs of progress seen. The export wire has remained quiet in recent days, limiting demand optimism. On the December chart, trade is just below the 20-day moving average at $6.85 after failing to hold above it midweek with the lower Bollinger Band at $6.73 further support. Further resistance is at the $6.97 upper Bollinger Band. SOYBEANS: Soybean trade is 4 to 5 cents lower at midday with trade continuing to chop around the middle of the range, unable to sustain strength short term with little fresh news beyond China securing 126,000 metric tons (mt) of beans, and Spain securing 198,000 mt. Meal is $3.00 to 4.00 higher, with oil 85 to 95 points lower. South America should see adequate moisture for the most part short term as planting pushes forward with some concern regarding 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 beyond today's action to get buyers more excited. On the January chart, the lower Bollinger Band at $13.71 will remain support with trade just above the 20-day moving average at $13.88 with the upper Bollinger Band at $14.08 the next round up. WHEAT: Wheat futures are 9 to 14 cents lower at midday with trade continuing to chop along the lower end of the range with weather concerns likely to keep support in place while we wait for further developments elsewhere to get buyers excited. Spring wheat retook the lead this morning with contract spreads mostly flat to firm still. 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 with trade still in the lower end of the recent range even with Friday's strength. The Plains continue to look dry in the short term except for the east. On the chart, KC December action has support at $9.10 on the lower Bollinger Band, which we continue to work just above, with the 20-day moving average tracking above the market at $9.61. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.