DTN Midday Grain Comments 11/09 10:52

DTN Midday Grain Comments 11/09 10:52 Corn, Wheat Futures Lower at Midday; Soybeans Higher Corn futures are 4 to 6 cents lower at midday Wednesday; soybean futures are 3 to 5 cents higher; wheat futures are 5 to 11 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 to 6 cents lower at midday Wednesday; soybean futures are 3 to 5 cents higher; wheat futures are 5 to 11 cents lower. The U.S. stock market is weaker with the DOW down 270 points. The U.S. Dollar Index is 55 points lower. Interest rate products are firmer. Energies are weaker with crude down 2.00 and natural gas down .30. Livestock trade is mixed. Precious metals are mixed with gold unchanged. CORN: Corn futures are 4 to 6 cents lower at midday with trade continuing to press back to the lower end of the range in pre-report action. The WASDE report is expected to show yield at 171.9 bushels per acre (bpa) with carryout at 1.207 billion bushels (bb), edging higher from last month on demand slowdowns. The daily wire was quiet again after the sales yesterday. Ethanol margins remain rangebound with corn values and driving demand choppy short term. Ethanol production was up by 11,000 barrels per day (bpd) on the report and stocks were off by 40,000 barrels. Fall fertilizer should be able to make better progress short term as temps cool back down into the weekend for most. Basis will likely remain mixed with river issues persisting while the market works to move bushels west with rains hopefully boosting navigation possibilities near term. On the December chart, trade is just below the lower Bollinger Band at $6.65 at midday with the 20-day moving average well above current action at $6.83. SOYBEANS: Soybean futures are 3 to 5 cents higher at midday with little fresh news besides the export action picking up with 198,000 metric tons (mt) sold to unknown and 264,000 mt sold to China as we chop along ahead of the report release. Meal is $1.00 to $2.00 lower and oil is 90 to 100 points higher. On the report, trade is looking for 49.8 bpa on yield, unchanged from last month, with carryout at 212 million bushels (mb), up slightly from last month. 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 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 $14.14 with the Upper Bollinger Band just above current action at $14.68, and the fresh high at $14.69. WHEAT: Wheat futures are 5 to 11 cents lower at midday with early gains fading again as trade continues to watch weather and political developments as action consolidates just below nearby resistance levels ahead of the report. Spread action is a bit firmer to start as well. Fresh political developments will be watched for with the initial end date for the Ukraine grain shipping corridor coming up mid-month and Russia apparently withdrawing from Kherson today. Carryout is expected to be at the 578 mb level, up slightly from last 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. Argentina continues to struggle with dryness as well while Australia sees flooding. On the chart, KC December action is just below the 20-day moving average at $9.49 with the lower Bollinger band at $9.17 as further support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.