DTN Midday Grain Comments 10/31 10:56

DTN Midday Grain Comments 10/31 10:56 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 6 to 8 cents higher at midday Monday; soybean futures are 1 to 2 cents higher; wheat futures are 17 to 31 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 6 to 8 cents higher at midday Monday; soybean futures are 1 to 2 cents higher; wheat futures are 17 to 31 cents higher. The U.S. stock market is softer with the DOW off 65 points. The U.S. Dollar Index is 85 points higher. Interest rate products are weaker. Energies are mixed with crude off .70 and natural gas up 54 cents. Livestock trade is mixed. Precious metals are weaker with gold off $4.00. CORN: Corn futures are 6 to 8 cents higher at midday with trade firming on Russia pulling out of the grain corridor deal along with harvest pressure continuing to ease; but we have been unable to hold the upper end of the day range. Ethanol margins will see some short-term pressure with corn and natural gas firming. Harvest should continue to push toward the homestretch will some fall fertilizer application underway. There is potential improvement in conditions in the west toward the end of the week. 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. Weekly inspections are expected to be in the 400,000 to 600,000 metric ton (mt) range with tech issue delaying the release from USDA. Harvest progress is nearly 75% complete. On the December chart, trade gapped above the 20-day moving average at $6.86 on a strong open and continues to hold there at midday with the lower Bollinger Band at $6.73 further support. Further resistance is at the $6.99 upper Bollinger Band, which we tested and faded from. SOYBEANS: Soybean futures are 1 to 2 cents higher at midday with trade lagging the corn and wheat action with little fresh news to push soybeans short term as harvest winds down and South America lacks immediate bullish issues. Meal is $1.50 to $2.50 lower and oil is 135 to 155 points higher. South America should see adequate moisture for the most part short term as planting pushes forward with some concern regarding the second week with the outcome of the Brazil election potentially slowing acreage growth in coming years but not an immediate market effect. 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. Weekly export inspections are expected to be in the 2.0 to 2.5 million metric ton (mmt) range and harvest at 90% complete. Trade will be looking for confirmation of further export sales. On the January chart, the lower Bollinger Band at $13.71 will remain support with trade holding above the 20-day moving average at $13.91 again with the upper Bollinger Band at $14.07 the next round up, which we backed away from overnight. WHEAT: Wheat futures are 17 to 31 cents higher at midday with trade gapping higher on the Ukraine grain corridor news but fading a bit from the early session highs as we will need to consolidate action as near-term shipping looks to continue out of the Black Sea. Chicago wheat has led so far with firmer spread action on winter wheat. Fresh political developments will be watched to see how world movement adapts. The dollar moving back into the upper end of the range may limit upside a bit as well. The Plains continue to look dry in the short term except for the east with the first condition report likely to be on the lower end of the five-year average, with planting just ahead, and emergence still lagging. Weekly export inspections are expected to be in the 300,000 to 500,000 mt range. On the chart, KC December action has support at $9.10 on the lower Bollinger Band which we tested last week, with the 20-day moving average just below the initial gap move at $9.61, which we are back below over the weekend, and the Upper Bollinger Band at $10.09. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.