DTN Midday Grain Comments 10/24 10:56

DTN Midday Grain Comments 10/24 10:56 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 4 to 5 cents lower at midday Monday; soybean futures are 18 to 19 cents lower; wheat futures are 10 to 16 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 to 5 cents lower at midday Monday; soybean futures are 18 to 19 cents lower; wheat futures are 10 to 16 cents lower. The U.S. stock market is mostly higher with the DOW up 280 points. The U.S. Dollar Index is 20 points lower. Interest rate products are mostly lower. Energies are mixed with crude down .75 cents and natural gas up .20. Livestock trade is mostly higher. Precious metals are firmer with gold up $1. CORN: Corn futures are 4 to 5 cents lower at midday with trade staying firmly range-bound in the absence of fresh news to start the week with negative spillover from wheat and soybeans. Ethanol margins should remain stable near term with driving demand worries to continue to linger into fall while cheaper natural gas can help to boost margins. Wetter weather to the east could slow harvest progress short term, while the west wraps up amid poor conditions and limited potential for immediate application of fall fertilizer. Basis will likely remain mixed with river issues persisting while the market works to move bushels west, although forecast rains could help parts of the Mississippi Basin soon. The daily export wire has remained quiet. Weekly export inspections remained poor at 479,623 metric tons (mt). Weekly crop progress should show harvest solidly past the halfway point. On the December chart, trade is just below the 20-day moving average at $6.83 after closing above it Friday with the lower Bollinger Band at $6.66 as further support. Further resistance is at the $6.99 upper Bollinger Band. SOYBEANS: Soybean futures are 18 to 19 cents lower at midday with trade fading back into the middle of the recent range. Demand concerns and the tail end of harvest are continuing to add pressure, with little issue in South America so far. Meal is $7.00 to $8.00 lower and oil is 50 to 60 points higher. South America should see relief in some of the drier areas short term as planting pushes forward. Basis will likely continue to see harvest pressure, although that should start to ease soon while building cash and board carries with the river issues stay in place. Trade will be looking for confirmation of further export sales with weekly inspections solidly better than expected at 2.889 million metric tons (mmt), while harvest heads towards the homestretch. On the November chart, the lower Bollinger Band at $13.53 will remain support with trade fading below the 20-day moving average at $13.83 after closing above it Friday with the upper Bollinger Band at $14.13 the next round up. WHEAT: Wheat futures are 10 to 16 cents lower at midday with early gains on Plains weather issues fading amid spillover pressure from the row crops and little other fresh news. Spring wheat trade has been trying to lead with spread action flat to start the week. The dollar remaining near the upper end of the range will likely continue to limit upside unless the weakness becomes more sustained with flat action so far after the pull-back Friday. Fresh political developments were limited last week as well with Ukraine shipping corridor renewal approaching quickly. The Plains continue to look dry in the short term, except for the east. Weekly export inspections were soft at 125,582 mt, with planting and emergence expected to remain behind the five- year average this afternoon. On the chart, KC December action has support at $9.25 on the lower Bollinger Band, which we tested last week, with the 20-day moving average tracking above the market at $9.69. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.