DTN Midday Grain Comments 10/05 11:05

DTN Midday Grain Comments 10/05 11:05 Grains Mixed at Midday Corn is narrowly mixed, soybeans are 3 to 4 cents lower, and wheat is 6 to 14 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 360 points. The dollar index is 40 points lower. Interest rate products are weaker. Energies are firmer with crude up $2.50. Livestock trade is mostly higher. Precious metals are mixed with gold up $12. CORN Corn trade is narrowly mixed at midday with light two-sided trade so far with harvest progress likely to pick up space this week. Spread trade is flat to so far. The daily export wire has been quiet for corn in recent days but Mexico picked up 160,020 metric tons to start the week. Ethanol margins will have some support from bounce back in the energy complex. Basis should see pressure this week with more bushels coming in to town but have held up well so far this month. Weekly export inspections were OK at 863,995 metric tons with weekly crop progress expected to show harvest solidly ahead of average. On the December contract resistance is the fresh high at $3.85 1/2 with support the 20-day at $3.70. SOYBEANS Soybean trade is 3 to 4 cents lower with trade starting to carve out a range as harvest continues at a good pace with all eyes on the daily export wire with nothing hitting today. Meal is 5.50 to 6.50 lower and oil is 60 to 70 points higher. The ral remains in the lower end of the range ahead of South American planting with farmers waiting for seasonal rains with Argentina working to encourage sales while Brazilian farmers have heavily sold ahead with acres expected to increase. Export offers continue to get tighter in availability as well with meal driving the product complex while strain on domestic logistics will increase as shipping pace needs move along at a rapid pace with last week operating at max capacity across all grains. Weekly export inspections were very strong at 1.667 million metric tons, with harvest well above the average pace. The November chart has resistance at the recent high at 10.46 3/4 with support the 20-day at 10.04. WHEAT Wheat trade is 6 to 14 cents higher at midday with broad buying on dry conditions in the northern hemisphere as drilling continues. The weaker dollar is adding a bit of support as well. Kansas City is at a 60-cent discount to Chicago with spreads slightly narrower today, while Minneapolis is back to a 36 cent discount with weaker action. Weekly export inspections were good at 643,671 metric tons, with planting progress past 50% and emergence lagging normal with dryness. Kansas City December chart resistance is the fresh high at $5.27 1/2, and support is the old high at $5.15. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2020 DTN, LLC. All rights reserved.