DTN Midday Grain Comments 10/12 11:16

DTN Midday Grain Comments 10/12 11:16 Grains Mixed at Midday Corn is 4 to 5 cents lower, soybeans are 21 to 23 cents lower, and wheat is 3 cents lower to 3 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 250 points. The dollar index is flat. Interest rate products are higher. Energies are mixed with crude down $1.25. Livestock trade are sharply lower. Precious metals are mixed with gold flat. CORN Corn trade is 4 to 5 cents lower with early gains fading amid broad commodity weakness this morning. Storms moved through parts of the Corn Belt with wind and hail potentially damaging standing corn in some areas last night, but weather will remain mostly open. The WASDE report had yields at 178.4 BPA vs. 177.7 expected, with carryout at 2.167 billion vs. 2.102 expected. Ethanol margins have found support from the rebound in the energy complex the past week, staying near the upper end of the range even with weakness this morning. 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 are expected to be in the 1.0 to 1.25 million metric ton range, with weekly crop progress keeping harvest ahead of normal but the reports are delayed until Tuesday for Columbus Day. On the December contract resistance is the fresh high at $3.99 1/4 with support the 20-day at $3.75. SOYBEANS Soybean trade is 21 to 4 cents lower at midday with softer spread trade, and two-sided futures action turning to broad selling as trade retreats from the fresh highs. Meal is $7.50 to $8.50 lower and oil is 55 to 65 lower. The WASDE report left yields unchanged at 51.9 BPA with carryout at 290 million vs. 352 million bushels expected, with world stocks at 88.7 million tons, down from 95.4. 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 with 1.75 to 2.00 million metric tons expected on the inspection report tomorrow, along with trade watch to see sales on the daily wire. Weekly crop progress should show harvest passed the halfway point and well ahead of normal. The November chart has resistance at the fresh high at 10.79 3/4 with support the 20-day at 10.24. WHEAT Wheat trade is 3 cents lower to 4 cents higher at midday with trade still working to consolidate recent gains with choppy spread action ongoing. The ruble is settling into a range with the export competitiveness little changed. Kansas City is at a 64-cent discount to Chicago with spreads moving back towards the recent highs, while Minneapolis is back to 49 cent discount with firmer action. The WASDE report showed carryout at 883 million inline with expectations and down from 925 last month, while world numbers were 321.5 million metric tons up from 316.8 last month. Weekly export inspections are expected to be in the 350,000 to 550,000-metric-ton range, with planting progress moving towards two-thirds complete, with emergence nearing 50%. Kansas City 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.