DTN Midday Grain Comments 10/06 11:05

DTN Midday Grain Comments 10/06 11:05 All Grains Higher at Midday Corn is 7 to 8 cents higher, soybeans are 26 to 28 cents higher, and wheat is 8 to 11 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is mixed with the Dow up 75 points. The dollar index is flat. Interest rate products are weaker. Energies are firmer with crude up $1.30. Livestock trade is mostly higher. Precious metals are mostly lower with gold down $6. CORN Corn trade is 7 to 8 cents higher at midday with broad buying and fresh highs being scored. The daily export wire has been quieter for corn in recent days with nothing hitting today. Ethanol margins will have some support from bounce back in the energy complex with gasoline demand showing some improvement but the fresh highs in corn are limiting progress. Basis should see pressure this week with more bushels coming in to town but have held up well so far this month. Weekly crop progress showed corn 87% mature vs. 78% on average, with harvest 25% complete, 1 percentage point ahead of average, with good to excellent up 1 percentage point to 62% good to excellent. On the December contract resistance is the fresh high at $3.89 1/4 with support the 20-day at $3.71 1/2. SOYBEANS Soybean trade is 26 to 28 cents higher at midday with trade building on the strong finish from yesterday with demand optimism and less than ideal harvesting conditions with the dry weather adding support while South America remains dry. Meal is 12.00 to 13.00 higher and oil is 35 to 45 points higher. We saw the announcement of sales of 154,400 metric tons sold to unknown. 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 crop progress showed 85% dropping leaves, 3 percentage points ahead of average, and 38% harvested vs. 28% on average with 64% good to excellent, unchanged on the week. The November chart has resistance at the fresh high at 10.53 3/4 with support the 20-day at 10.10. WHEAT Wheat trade is 8 to 11 cents higher at midday with early two sided trade turning to broad buying as Kansas City action continues to lead with dryness across the plains. The weaker dollar is adding a bit of support as well. Kansas City is at a 59-cent discount to Chicago with spreads slightly narrower today, while Minneapolis is back to a 49 cent discount with weaker action. Planting progress at 52% vs. 47% on average, and emergence at 24% vs. 21% on average. Kansas City December chart resistance is the fresh high at $5.42 3/4, 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.