DTN Midday Grain Comments 11/07 10:53

DTN Midday Grain Comments 11/07 10:53 Corn, Soybean Futures Lower at Midday; Wheat Higher Corn futures are 1 to 2 cents lower at midday Monday; soybean futures are 6 to 8 cents lower; wheat futures are 10 to 16 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents lower at midday Monday; soybean futures are 6 to 8 cents lower; wheat futures are 10 to 16 cents higher. The U.S. stock market is firmer with the DOW up 240 points. The U.S. Dollar Index is 50 points lower. Interest rate products are weaker. Energies are firmer with crude up 1.10 and natural gas up .80. Livestock trade is mostly higher with hogs leading. Precious metals are mixed with gold up 5.00. CORN: Corn futures are flat to 2 cents lower at midday with trade continuing to grind along the lower end of the range with little fresh news and position-squaring ahead of the WASDE report Wednesday. Ethanol margins remain rangebound with corn values and driving demand choppy short term. Harvest should continue to push toward the homestretch with progress likely near 85% on the weekly USDA Crop Progress Report this afternoon. Some fall fertilizer application is underway, with potential improvement in conditions with cooler and wetter temps coming late in the week and next week. Basis will likely remain mixed with river issues persisting while the market works to move bushels west with rains hopefully boost navigation possibilities near term. Weekly export inspections remained very soft at 231,458 metric tons (mt). The export wire has remained quiet in recent days, limiting demand optimism. On the December chart, trade is back below the 20-day moving average at $6.86 with the lower Bollinger Band at $6.74 as further support. Further resistance is at the $6.98 upper Bollinger Band. SOYBEANS: Soybean futures are 6 to 8 cents lower at midday with two-sided trade as we rebounded from early selling before bouncing early in the session and fading back with fresh news limited and little change in major South American conditions short term. Meal is $3.50 to $4.50 lower, and oil is 30 to 40 points higher. Basis may ease if board strength is sustained and late-week rains add to river improvement with some gains in flow to start the week. Trade will be looking for confirmation of further export sales with the export wire quiet last week. On the weekly Crop Progress report, harvest progress will likely be near 95%. Weekly export inspections remained strong at 2.591 million metric tons (mmt). Trade will see increasing focus on South American weather coming forward with mixed forecasts, 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 moving average at $14.10 with the Upper Bollinger Band just below current action at $14.62, and the fresh high at $14.65. WHEAT: Wheat trade is 10 to 16 cents higher with buying developing after early weakness as political developments in the Black Sea short term and wheat development on the Plains will remain at the forefront with this afternoon's condition report. Spread action is a bit firmer to start as well. Fresh political developments will be watched with the end date for the Ukraine export corridor coming up at mid-month. The Plains could see better moisture in the west in the second week with significant ground to make up with snow potential for some of the driest areas. Weekly crop progress should show planting near complete with emergence behind normal and slightly better conditions. Weekly export inspections continue to struggle at 180,991 mt. Argentina continues to struggle with dryness as well, while Australia sees flooding. On the chart, KC December action is back above the 20-day moving average at $9.54 with the lower Bollinger band at $9.15 as further support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.