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DTN Midday Grain Comments 09/23 11:08

23 Sep 2022
DTN Midday Grain Comments 09/23 11:08 Grains Lower at Midday Corn trade is 9 to 11 cents lower; beans are 24 to 26 cents lower and wheat is 18 to 21 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is sharply lower with the Dow down 470 points. The dollar index is 135 points higher. Interest rate products are weaker. Energies are sharply weaker with crude down 4.30. Livestock trade is mostly lower. Precious metals are sharply lower with gold $28 lower. CORN: Corn trade is 9 to 11 cents lower at midday with risk off trade as we head towards the weekend with expanding harvest and negative outside markets bringing pressure to start; trade worked a little off the early lows. Short-term forecasts have the center of the Corn Belt drier with higher-than-normal temperatures again into the weekend. The export wire was quiet after yesterday's action. Ethanol margins will likely chop along with lower driving demand and corn values keeping pressure on for now, with natural gas fading a little to add support. Basis will be watched to see how quickly we go to harvest footing, and how aggressively the West will bid for corn in the deficit areas into early harvest. Some areas are starting to show more strength. On the December chart, trade remains below the Upper Bollinger band at $7 as the next level up, with the 20-day at $6.78, which we are testing at midday. SOYBEANS: Soybean trade is 24 to 26 cents lower at midday with trade falling back into the lower end of the recent range with risk off action and harvest pressure continuing. Meal is $3.50 to $4.50 lower and oil is 225 to 235 points lower. South America is moving towards planting preparation with late demand picking up ahead of the U.S. export window with the stronger dollar potentially pushing that further out and Brazil seeing better rain than Argentina to start. Basis will continue to shift towards harvest footing with trade watching to see how quickly export shipments pick up into the end of the month with some further near-term basis pressure expected into October. The daily wire remained quiet again today. On the November soybean chart, trade has the Upper Bollinger Band at $15.01 as resistance, and the 20-day at $14.40 which we are below at midday. WHEAT: Wheat trade is 21 to 25 cents lower at midday with trade fading back from the recent highs with the risk off action, and stronger dollar offsetting political and weather concerns for now. Spring wheat harvest should be effectively wrapped up, with winter wheat planting expanding with needed rains in some of the growing areas. The dollar is at fresh highs after the guidance remains for increasing rates with MATIF prices snapping back to the upper end of the range on the political concerns before fading in the risk off trade. The Kansas City December chart has support at the 20-day at $9.20, and the Upper Bollinger band at $9.84 as resistance. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.