DTN Midday Grain Comments 10/13 10:56

DTN Midday Grain Comments 10/13 10:56 Corn, Soybean Futures Lower at Midday; Wheat Flat-Higher Corn futures are 3 to 4 cents lower at midday Friday; soybean futures are 13 to 14 cents lower; wheat futures are flat to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents lower at midday Friday; soybean futures are 13 to 14 cents lower; wheat futures are flat to 8 cents higher. The U.S. stock market is mixed with the S&P 20 lower. The U.S. Dollar Index is 10 points higher. Interest rate products are firmer. Energies are mixed with crude 3.50 higher and natural gas .10 lower. Livestock trade is mostly lower. Precious metals are mixed with gold 48.80 higher. CORN: Corn futures are 3 to 4 cents lower with trade fading back off the upper end of the range with soybean weakness helping drag action lower, along with harvest pressure. On the report Thursday, yield fell to 173.0 bushels per acre (bpa) versus 173.6 bpa expected. Carryout was pegged at 2.111 billion bushels (bb) versus 2.156 bb expected. World stocks were 312.4 million metric tons (mmt) versus 312.9 mmt expected. Ethanol margins might see a bit of pressure from firmer corn, but rising driving demand should support blender margins. Weekly export sales of corn were reported at 910,410 metric tons (mt), showing further improvement. Early South American corn sees little change in near-term weather conditions. On the December chart, the 20-day moving average at $4.84 7/8 is still support, with the Upper Bollinger Band at $4.99 1/2 as resistance, then the $5.00 area. SOYBEANS: Soybean futures are 12 to 14 cents lower, fading back from the $13.00 area again as harvest pressure and meal weakness limit upside during the day session. Meal is 3.00 to 4.00 lower and oil is 30 to 40 points higher. On the report, soybean yields came in at 49.6 bpa versus 49.9 bpa expected. Carryout was 220 million bushels (mb) versus 236 mb expected. World stocks were 115.6 mmt versus 119.6 expected. The daily export wire saw more action with 117,300 mt sold to unknown, along with 100,000 of meal and 1.057 mmt on the weekly report with 60,200 of meal, and 5,300 of oil. Basis should flatten a bit in the short term with harvest heading for the back stretch and more improvement needed in the river system with expected rains likely to help some but more follow-up will be needed. South American planting should continue to move forward in the short term for Brazil, with showers in some area likely lighter than desired except for southern Brazil. November chart support is the 20-day moving average at 12.89, which we are back below at midday, with the lower Bollinger Band at $12.50 as support. WHEAT: Wheat futures are flat to 8 cents higher at midday with follow-through buying holding after trade put in a key reversal Thursday following the report, with action pulling back off the overnight highs. Matif wheat is solidly higher with the dollar holding near the highs. Plains planting progress should continue to advance with further rains needed to establish stands. Planting will continue in the Black Sea region as bushels continue to move out. On the report, domestic carryout was 670 mb versus 651 mb expected. World stocks were 258.1 mmt versus 258.5 mmt expected. Weekly export sales were a marketing-year high at 652,000 mt with China securing another 181,000 mt. On the KC December chart, the lower Bollinger Band at $6.43 is support with the fresh low at $6.55 above that, which we scored Thursday, and the 20-day moving average above the market at $6.93 as resistance. David Fiala can be reached at dfiala@futuresone.com Follow him on X, formerly Twitter, @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.