Grain News

DTN Midday Grain Comments 10/19 11:00

DTN Midday Grain Comments 10/19 11:00

Corn, Beans Higher at Midday; Wheat Mixed

Corn is 1 to 2 cents higher, soybeans are 3 to 4 cents higher, and wheat is
2 cents lower to 3 cents higher.

David M. Fiala
DTN Contributing Analyst

The U.S. stock market is weaker with the Dow down 60 points. The dollar
index is 38 points lower. Interest rate products are lower. Energies are mixed
with crude up $0.20. Livestock trade is sharply lower except front-month hogs.
Precious metals are firmer with gold up $2.


Corn trade is 1 to 2 cents higher at midday with spread trade easing and
two-sided action coming into play during the day session. The USDA announced
345,000 metric tons sold to unknown, and 123,000 metric tons to Mexico. Ethanol
margins remain range bound with unleaded remaining at a discount to ethanol
with corn values continuing to limit upside. Basis will likely remain solid
with rains slowing harvest along with the upfront demand. Weekly export
inspections remained solid at 911,012 metric tons, with weekly crop progress
showing harvest near 40% and solidly ahead of average. On the December contract
resistance is the fresh high at $4.08 with support the 20-day at $3.83.


Soybean trade is 3 to 4 cents higher with trade finding light buying to
start the week, with spread trade flat to softer so far, with trade looking for
more export business with nothing announced today and rains in South America as
planting remains behind schedule. Meal is $6.50 to $7.50 higher and oil is 40
to 50 points lower. The ral remains in the lower end of the range with
planting progress in Brazil likely to pick up, with Argentina still holding
onto soybean supplies as an inflation hedge. Basis remains strong as we
continue to work to max out our logistics capacity to ship the needed export
bushels. Weekly export inspections remained very strong at 2.173 million metric
tons, with harvest progress nearing 80% complete. The November chart has
resistance at the fresh high at 10.79 3/4 with support the 20-day at 10.31.


Wheat trade is 2 cents lower to 3 cents higher with from month Minneapolis
trade leading after early Chicago strength as world weather concerns continue
to drive the wheat complex higher. The ruble action continues to favor Russia a
bit in the export markets but their domestic prices are now elevated with
growing winter-kill concerns, along with too much rain in Australia. Kansas
City is at a 64-cent discount to Chicago with spreads backing off the recent
highs, while Minneapolis is back to 61 cent discount with firmer action and
fresh highs scored. Rains look to be concentrated to the eastern growing areas
in the short term. Weekly export inspections were disappointing at 239,688
metric tons, with planting ahead of normal, and emergence lagging with the dry
weather for the plains. Kansas City December chart resistance is the fresh high
at $5.68 1/2, and support is the 20-day at $5.18.

David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at
Follow him on Twitter @davidfiala

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