DTN Wheat News

DTN Weather Trend Indicators 10/26 10:23 Weather Indicator status values are: Corn=Neutral Soybeans=Down Wheat=Down LEGEND: The indicator choices are: Corn, Soybeans, Wheat The status choices are: Up, Down, Neutral For example: Corn=Neutral

DTN Early Word Grains 10/26 05:45 Grains Begin Week on Back Foot December corn is down 3 1/4 cents per bushel, November soybeans are down 3 1/4 cents, and December KC wheat is down 14 cents. Tregg Cronin DTN Contributing Analyst Pre-6 a.m. Globex Prices: December corn is down 3 1/4 cents per bushel, November soybeans are down 3 1/4 cents, and December KC wheat is down 14 cents. CME Globex Recap: Equity markets were mostly lower overnight with U.S. futures suggesting a lower cash open Monday morning. Coronavirus cases on the rise in the U.S. and Europe remain an economic headwind as lockdown measures are contemplated or implemented. Stimulus talks in the United States look bleak with just over a week until the presidential election and a Supreme Court vote likely this week. Energy prices were weaker overnight with crude oil falling back below $40.00 per barrel as concerns about fuel demand mount. Grain markets were weaker across the board overnight after some contracts gave up early gains. Losses were led by wheat with Kansas City down double digits in overnight trade. The best moisture potential of the season looks set to arrive this week in the Southern Plains. The ag space has been on an historic run the last several weeks but the managed fund community is now holding the bag on over 600,000 contracts, which will need to be defended. OUTSIDE MARKETS: Previous closes on Friday showed the Dow Jones Industrial Average down 28.09 at 28,335.57 and the S&P 500 up 11.90 at 3,453.49 while the 10-year Treasury yield ended at 0.841%. Early Monday, the December DJIA futures are down 248 points. Asian markets are lower with Japan's Nikkei 225 down 22.25 (0.09%) and China's Shanghai Composite down 26.88 points (0.82%). European markets are lower with London's FTSE 100 down 9.08 points (0.15%), Germany's DAX down 264.16 points (2.09%) and France's CAC 40 down 25.21 points (0.51%). The December euro is down 0.005 at 1.180 and the December U.S. Dollar Index is up 0.255 at 93.020. The December 30-year T-Bond is up 25/32nds, while December gold is down $5.40 at $1,899.80 and December crude oil is down $1.07 at $38.78. Soybeans on China's Dalian Exchange were up 1.31% while soybean meal was down 0.06%.

FARM MARKET NEWS - SOYBEAN AND WHEAT REPORT FOR Fri, October 23 Exchange rate was 1.3141 up 0.0001 Chicago soybeans closed slightly higher. NOV20 HI 10.88 1/2 NOV21 HI 9.86 3/4 LOW 10.65 3/4 LOW 9.74 1/4 CLOSE10.83 3/4 Up 10 CLOSE 9.82 3/4 Up 1/4 OLD CROP NEW CROP Location Basis 1mt 2mt 3mt U.S. $/bu $/mt Basis U.S. $/bu $/mt ELEVATORS +NOV20+JAN21+JAN21 CK Low 2.75 13.59 499.26 2.42 12.25 450.02 CK High 2.85 13.69 502.93 2.45 12.28 451.12 CK Average 2.82 -0.44 13.66 501.95 2.45 -0.49 12.27 450.94 Essex Cty 2.75 13.59 499.26 2.45 12.28 451.12 Mdsx Low 2.86 13.70 503.30 2.43 12.26 450.39 Mdsx High 2.87 13.71 503.66 2.45 12.28 451.12 Mdsx Average2.87 -0.41 13.70 503.48 2.44 -0.49 12.27 450.75 Hensall 2.89 13.73 504.40 2.48 12.31 452.35 Bruce 2.85 13.69 502.93 2.50 12.33 452.96 Putnam 2.87 13.71 503.66 2.45 12.28 451.12 Burford 2.93 13.77 505.87 2.50 12.33 452.96 Port Perry 2.85 13.69 502.93 2.42 12.25 450.02 Norfolk 2.85 13.69 502.93 2.45 12.28 451.12 Palmerston 2.91 13.75 505.13 2.49 12.32 452.59 Varna 2.90 13.74 504.77 2.50 12.33 452.96 Trenton 2.80 13.64 501.09 2.45 12.28 451.12 Winchester 3.00 13.84 508.44 2.63 12.46 457.73 North Gower 2.92 13.76 505.50 2.58 12.41 455.90 Vankleek Hil2.92 13.76 505.50 2.46 12.29 451.49 Huron FOB 3.09 3.22 3.22 2.96 13.93 511.75 N/A Kent FOB 2.85 13.69 502.93 2.45 12.28 451.12 Lambton FOB 2.95 13.79 506.60 2.40 12.23 449.28 Mdsx FOB 2.95 3.14 3.14 2.94 13.79 506.60 2.52 12.35 453.69 PROCESSORS Windsor 3.01 13.85 508.81 2.60 12.43 456.63 TRANSFER Hamilton 3.35 14.19 521.30 2.85 12.68 465.82 Prescott 3.12 13.96 512.85 2.82 12.65 464.72 Port Colborn3.42 14.26 523.87 N/A Toledo El. -0.16 10.68 392.42 -0.46 9.37 344.20 Exchange rate was 1.3141 up 0.0001 Chicago wheat closed slightly to moderately higher. DEC20 HI 6.35 1/2 JUL21 HI 6.19 1/2 LOW 6.19 1/2 LOW 6.09 1/2 CLOSE 6.32 3/4 Up 10 CLOSE 6.18 Up 5 Minni wheat closed slightly higher. DEC20 HI 5.81 3/4 SEP21 HI 5.95 LOW 5.72 1/2 LOW 5.89 3/4 CLOSE 5.77 1/2 Up 3 CLOSE 5.94 Up 2 1/2 GFO Cash Wheat Prices - DEL Terminal Harvest 20 Soft White(C) Hard Red(C) Soft Red(C) Red Spring(M) Basis 1.53 1.72 1.53 1.35 CAD $/bu 7.85 8.05 7.85 7.13 CAD $/tonne 288.61 295.86 288.61 261.94 Direct MarkHarvest 2020 Harvest 2021 DELIVERED BASIS DELIVERED BASIS Location SWW(C) HRW(C) SRW(C) HRS(M) SWW(C) HRW(C) SRW(C) HRS(M) ELEVATORS Brgssvll N/A N/A 1.10 N/A N/A N/A 1.15 N/A London 1.31 1.37 1.11 N/A 1.59 1.59 1.14 N/A Hensall 1.35 N/A 1.10 N/A 1.40 N/A 1.15 N/A Trenton N/A N/A N/A N/A N/A N/A 1.20 N/A Bruce 1.10 1.25 1.10 1.25 1.25 1.35 1.15 1.05 Essex N/A N/A 1.10 N/A N/A N/A 1.15 N/A Norwich 1.35 N/A 1.10 N/A 1.40 N/A 1.15 N/A Port Hope N/A N/A 1.10 N/A N/A N/A 1.15 N/A Kent Bridge 1.35 N/A 1.10 N/A 1.40 N/A 1.15 N/A Chatham N/A N/A 1.10 N/A N/A N/A 1.15 N/A Brigden N/A N/A 1.10 N/A N/A N/A 1.20 N/A Palmerston N/A 1.39 1.13 1.22 N/A 1.50 1.17 0.94 Varna 1.15 1.30 1.10 N/A 1.35 1.40 1.15 N/A Mitchell 1.35 1.40 1.10 N/A 1.40 1.45 1.15 N/A Thornton N/A N/A N/A 1.73 N/A N/A N/A N/A North Gower N/A 1.35 1.20 0.95 N/A 1.62 1.37 0.90 W O Feed 1.77 TERMINAL Port Colbor N/A N/A 1.70 N/A N/A N/A 1.57 N/A PROCESSORS Toledo FM N/A N/A 1.99 N/A N/A N/A 2.07 N/A Toledo El. 6.13US 8.05CA 6.13US 8.05CA GFO Contract Wheat Prices - DEL Terminal Harvest 21 Soft White(C) Hard Red(C) Soft Red(C) Red Spring(M) Basis 1.66 1.79 1.49 1.08 CAD $/bu 7.84 7.97 7.67 7.02 CAD $/tonne 288.18 293.00 281.90 257.77 (C)-Basis over the Chicago Board of Trade futures (M)-Basis over the Minneapolis Grain Exchange FEED GRAINS FOB Hm Soymeal 596.80 DDG's FOB Srn & Aylm 250.00 - 275.00

DTN Closing Grain Comments 10/23 13:52 Grains Finish Higher Friday; More Demand Anticipated Active contracts of corn, soybeans and all three wheats closed higher Friday with strong demand expectations for corn and soybeans. Wheat prices also got help from the anticipation of sub-freezing temperatures coming to the Southern Plains this weekend.

DTN Midday Grain Comments 10/23 11:05 Grains Mixed at Midday Corn is flat to 1 cents higher, soybeans are 3 to 5 cents lower, and wheat is 4 to 9 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is weaker with the Dow down 65. The dollar index is 7 points lower. Interest rate products are mixed. Energies are flat with crude down $0.15. Livestock trade is mixed. Precious metals are weaker with gold down $3.30. CORN Corn trade is flat to 1 cent higher at midday with steady spread action up front as we stay near the fresh highs. The export wire showed 100,000 metric tons sold to unknown. Ethanol margins remain under pressure with corn values elevated 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 3/4 with support the 20-day at $3.92. SOYBEANS Soybean trade is 3 to 5 cents lower at midday with light two-sided action so far with trade pulling back from the fresh highs scored earlier in the week with the export market quiet. Meal is $1.50 to $2.50 lower and oil is flat to 10 points lower. Brazil should continue to make planting progress with the better rains short term, while Argentina continues to remain slow in moving soybeans to crushers. Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels. The export wire was quiet today. The November chart has resistance at the fresh high at 10.85 1/4 with support the 20-day at 10.43. WHEAT Wheat trade is 4 to 8 cents higher at midday with winter wheat trade leading as we try to find buying again after lower closes the last two days with firmer spread trade overall. 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 as harvest starts. Middle East buyers are becoming more active with tenders as well. Kansas City is at a 65-cent discount to Chicago with spreads backing off the recent highs, while Minneapolis is back to 52 cent discount with very active spread action. Rains look to be more wide spread for U.S. growing areas over the next seven-10 days. Kansas City December chart resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.35. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2020 DTN, LLC. All rights reserved.

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