DTN Midday Grain Comments 11/01 10:53

DTN Midday Grain Comments 11/01 10:53 Corn, Soybean Futures Higher at Midday; Wheat Flat-Lower Corn futures are 1 to 2 cents higher at midday Tuesday; soybean futures are 20 to 22 cents higher; wheat futures are flat to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents higher at midday Tuesday; soybean futures are 20 to 22 cents higher; wheat futures are flat to 9 cents lower. The U.S. stock market is softer with the DOW off 170 points. The U.S. Dollar Index is 5 points higher. Interest rate products are mixed. Energies are mixed with crude up 2.00 and natural gas off 44 cents. Livestock trade is mixed. Precious metals are firmer with gold up $6.50. CORN: Corn futures are 1 to 2 cents higher at midday with two-sided action so far as support spills over from soybeans; however, we remain below resistance levels after fading from them Monday. Ethanol margins will see some pressure from corn values and driving demand, but natural gas fading again will add support. Harvest should continue to push toward the homestretch with 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 potentially bringing more relief into the weekend. The export wire has remained quiet in recent days, limiting demand optimism. Harvest progress at 76% complete versus 64% on average has us on the homestretch there. On the December chart, trade moved above the 20-day moving average at $6.86 yesterday and continues to hold above there with the lower Bollinger Band at $6.74 as further support. Further resistance is at the $6.98 upper Bollinger Band, which we tested and faded from. SOYBEANS: Soybean futures are 20 to 22 cents higher at midday with trade pushing back into resistance levels with support from protests in Brazil and mixed, short-term weather as harvest pressure in the U.S. eases. Meal is flat to $1.50 lower, and oil is 30 to 40 points higher as crush margins narrow. South America should see mixed weather short term, which will be watched as crop development comes into focus, while protests focused on blocking transportation in Brazil bring up short-term concerns. Basis may ease if board strength is sustained, and late week rains add to river improvement. Weekly crop progress showed harvest at 88% complete versus 78% on average. Trade will be looking for confirmation of further export sales beyond last week's action to get excited with nothing hitting the daily wire to start the week. On the January chart, trade is well above the 20-day moving average at $13.94 with the Upper Bollinger Band below current action at $14.24, and the fresh high at $14.47. WHEAT: Wheat futures are flat to 9 cents lower at midday with trade working to consolidate Monday's gains. Winter wheat conditions are adding support while trade tries to sort out the shipping implications of Russia suspending participation in the Ukraine grain corridor. Fresh political developments will be watched for to see how world movement adapts with cargoes still moving from Ukraine on Monday, which will spur volatility. The dollar fading will add support as well, but we failed to hold early weakness again. The Plains continue to look dry in the short term except for the east with the first condition report showing 28% good to excellent, 35% poor to very poor, 17% below this week a year ago with 87% planted versus 85% on average, and 62% emerged versus 66% on average. On the chart, KC December action has support at the 20-day moving average at $9.60 that we jumped back above Monday, with the Upper Bollinger Band at $10.09, the next level of resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.