DTN Midday Grain Comments 11/02 10:56

DTN Midday Grain Comments 11/02 10:56 Corn, Wheat Futures Lower at Midday; Soybeans Higher Corn futures are 11 to 12 cents lower at midday Wednesday; soybean futures are 2 to 3 cents higher; wheat futures are 38 to 56 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 11 to 12 cents lower at midday Wednesday; soybean futures are 2 to 3 cents higher; wheat futures are 38 to 56 cents lower. The U.S. stock market is softer with the DOW off 45 points. The U.S. Dollar Index is narrowly mixed. Interest rate products are firmer. Energies are firmer with crude up 1.40 and natural gas up 44 cents. Livestock trade is mixed. Precious metals are narrowly mixed. CORN: Corn futures are 11 to 12 cents lower at midday, breaking lower after initial strength as Russia announced they were resuming participation in the Ukraine grain deal. Trade is just above the day's lows at midday. Ethanol margins will see some pressure from corn values and driving demand, with the weekly report showing production edging higher again -- up 7,000 barrels per day (bpd) with stocks down 59,000 barrels. 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. On the December chart, trade moved back below the 20-day moving average at $6.86 overnight with action just below that on midday with the lower Bollinger Band at $6.74 as further support. Further resistance is at the $6.99 upper Bollinger Band, which we tested and faded from again overnight. SOYBEANS: Soybean futures are 2 to 3 cents higher at midday with action firming back from early selling to consolidate Tuesday's gains on Brazil unrest and mixed forecasts. Meal is $2.50 to $3.50 lower and oil is 180 to 200 points higher as crush margins narrow. Basis may ease if board strength is sustained, and late-week rains add to river improvement. Trade will be looking for confirmation of further export sales beyond last week's action with nothing hitting the daily wire to start the week. Trade will see increasing focus on South American weather coming forward, along with a focus on any short-term shipping disruptions in Brazil which likely keeps action volatile. On the January chart, trade is well above the 20-day at $13.97 with the Upper Bollinger Band below current action at $14.34, and the fresh high at $14.58. WHEAT: Wheat futures are 38 to 56 cents lower at midday with trade sliding sharply as Russia announced they were staying in the Ukraine grain deal for now. While weather concerns will keep a level of support under the market, a wild day session is likely as volume picks up along with potential currency impacts from the Fed action at 1 p.m. CDT. Spring wheat is the leader overnight with spread action softer overall. Fresh political developments will be watched with the initial end date for the corridor coming up at mid-month. The dollar fading will add support as well with further sustained weakness needed to support trade with the Fed statement likely to be a market mover. The Plains continue to look dry in the short term except for the east. Argentina continues to struggle with dryness as well. On the chart, KC December action broke back below the 20-day moving average at $9.59 overnight with the lower Bollinger band at $9.10 as further support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.