DTN Midday Grain Comments 10/09 10:45

DTN Midday Grain Comments 10/09 10:45 All Grains Higher at Midday Corn is 4 to 5 cents higher, soybeans are 14 to 15 cents higher, and wheat is 6 to 9 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 125 points. The dollar index is 46 points lower. Energies are mixed with crude down $0.10. Livestock trade is mixed with cattle leading. Precious metals are firmer with gold up $37. CORN Corn trade is 4 to 5 cents higher at midday with trade firmer ahead of the WASDE report at 11 a.m. CDT, along with spillover support from the other markets. The WASDE report is expected to show yield down slightly to 177.7 bushels per acre, with carryout at 2.102 billion bushels (bb), and world stocks at 300 million metric tons (mmt), down 17 mmt from last month. Ethanol margins have found support from the rebound in the energy complex. Basis should see pressure this week with more bushels coming into town but have held up well so far this month. On the December contract, resistance is the fresh high at $3.93 1/4 with support the 20-day at $3.75. Soybeans Soybeans trade is 13 to 15 cents higher at midday with trade remaining just under the fresh highs with spread trade slightly weaker at midday with the export wire quiet Friday morning. Meal is $3.00 to $4.00 higher with oil 85 to 95 points higher. The WASDE report is expected to show yields down slightly to 51.5 bpa with carryout at 352 million bushels (mb), down 108 mb from last month. World numbers are estimated at 91.9 mmt. The real remains in the lower end of the range ahead of South American planting with farmers waiting for seasonal rains. Argentina is working to encourage sales, while Brazilian farmers have heavily sold ahead with acres expected to increase and rains starting to enter the extended forecast with CONAB forecasting a record crop to start. 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 $10.65 1/2 with support the 20-day at $10.21. WHEAT Wheat trade is 7 to 8 cents higher at midday with trade trying to find support after the sharp reversal Thursday with the weaker dollar, weather and row crops still adding support. The ruble is settling into a range with the export competitiveness little changed. KC is at a 65-cent discount to Chicago with spreads reversing off of a fresh low for the move Wednesday, while Minneapolis is back to a 52-cent discount with firmer action. The WASDE report is expected to show wheat carryout at 887 mb, down 130 mb from last month, with world stocks at 316.6 mmt, down slightly from last month. KC December chart resistance is the fresh high at $5.52 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.