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DTN Midday Grain Comments     10/22 11:06

   Beans, Corn Higher at Midday

   Corn is 3 to 4 cents higher, soybeans are 8 to 10 cents higher, and wheat is 
4 cents lower to 3 cents higher.

David M. Fiala
DTN Contributing Analyst

   The U.S. stock market is mixed with the Dow flat. The dollar index is 30 
points higher. Interest rate products are lower. Energies are firmer with crude 
up $0.90. Livestock trade is lower. Precious metals are weaker with gold down 


   Corn trade is 3 to 4 cents higher with spread trade continuing to firm with 
December-March down to below 2 cents. The export wire was quiet again today but 
action indicates more sales will likely show up soon with weekly export sales 
strong 1.83 million metric tons. Ethanol margins remain under pressure with 
corn values as ethanol retains its premium to unleaded. Basis will likely 
remain solid with rains slowing harvest along with the upfront demand.  On the 
December contract resistance is the fresh high at $4.19 with support the 20-day 
at $3.90.


   Soybean trade is 7 to 10 cents higher after early weakness with spread trade 
and meal action continuing to carry trade forward with meal leading. Meal is 
$6.50 to $7.50 higher and oil is 50 to 60 points higher. The ral remains in 
the lower end of the range with planting progress in Brazil likely to pick up 
with plentiful rains short term, with Argentina still holding onto soybean 
supplies as an inflation hedge with another crush plant idled by mechanical 
issues via explosion. Basis remains strong as we continue to work to max out 
our logistics capacity to ship the needed export bushels. Weekly export sales 
remain strong at 2.23 million metric tons, 321,900 of meal, and 37,000 of oil. 
The daily wire showed sales of 152,404 metric tons to Mexico, and 132,000 to 
unknown. The November chart has resistance at the fresh high at 10.85 1/4 with 
support the 20-day at 10.40.


   Wheat trade is 5 cents lower to 1 cent higher with winter wheat trade weaker 
with better rains expected on the Plains short term, with little change to 
world forecasts yet. 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 although production 
estimates remain elevated. South Korea secured 130,000 metric tons of white 
wheat on the daily wire. Middle East buyers are becoming more active with 
tenders as well. Kansas City is at a 57-cent discount to Chicago with spreads 
backing off the recent highs, while Minneapolis is back to 40 cent discount 
with firmer action and a sharp reversal this week. Rains look to be 
concentrated to the eastern growing areas in the short term. Weekly export 
sales were a bit softer at 367,500 metric tons. Kansas City December chart 
resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.30.

   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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