DTN Midday Grain Comments 10/07 11:06

DTN Midday Grain Comments 10/07 11:06 All Grains Higher at Midday Corn is 4 to 5 cents higher, soybeans are 11 to 12 cents higher, and wheat is 12 to 14 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 440 points. The dollar index is 5 points lower. Interest rate products are weaker. Energies are weaker with crude down $1.10. Livestock trade is mixed. Precious metals are mixed with gold down $20. CORN Corn trade is 3 to 4 cents higher overnight with broad buying emerging again after early weakness to move trade back to the highs with spread trade remaining firm. The weekly ethanol report showed production rebounding 42,000 barrels per day, with stocks down 19,000 barrels per day helping to support corn trade. Basis should see pressure this week with more bushels coming in to town but have held up well so far this month. On the December contract resistance is the fresh high at $3.92 with support the 20-day at $3.72 3/4. SOYBEANS Soybean trade is 11 to 12 cents higher with trade scoring new highs again with another 132,000 metric tons of soybeans sold to China, and 120,000 metric tons to unknown. Meal is $6.50 to $7.50 higher and oil is 15 to 25 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 and rains starting to enter the extended forecast. Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels. The November chart has resistance at the fresh high at 10.59 3/4 with support the 20-day at 10.14. WHEAT Wheat trade is 12 to 14 cents higher at midday with Kansas City trade remaining the leader with fresh highs scored again with weather concerns and broad fund buying helping to push trade along and intramonth spreads firming. 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 and the narrowest level in some time, while Minneapolis is back to a 56 cent discount with weaker action. Kansas City December chart resistance is the fresh high at $5.52 1/4, 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.