DTN Midday Grain Comments 11/04 11:31

DTN Midday Grain Comments 11/04 11:31 Grain Trade Higher at Midday Grain trade was mixed most of the morning but has moved to higher territory at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow futures down 55 points. The interest rate products are higher. The U.S. dollar index is 75 points higher. Energies are lower with crude down $1.50. Livestock trade has cattle limit lower, and hogs are mixed. Precious metals are lower with gold down $1. CORN: Corn trade is 1 to 2 cents higher with light upside momentum at midday. Futures are at the daily highs up 6 cents from our early lows. The weekly EIA report listed ethanol production 2.65% higher, stocks 2.74% higher with gasoline demand down 1.70%. Unleaded and crude are lower at midday. Ethanol is also lower at midday, which may limit upside in corn. Basis has firmed in the Eastern Corn Belt, which should reorient some of the domestic and international flows of corn. This is supportive for the board, but board rallies should find corn sales that will soften basis it moves out of the recent trading range. Harvest should continue to wrap up in the week ahead, with many elevators in the Western Corn Belt full and only piling on the ground or bagging. On the December chart, support is at the $3.72 October low, then the $3.80 20-day moving average. Upside resistance at this juncture is the 100-day at $3.89. SOYBEANS: Soybean trade is 2 to 6 cents higher with light upside momentum in play at midday. Meal is $2 higher, and oil is 40 points higher, finding support on better international veg oil demand. The lower crude trade and higher dollar was noted limiting upside prior to midday. With the USDA report looming next Tuesday, production estimates are expected to stay strong with a steady to slightly higher production number expected. The pace of fresh export sales is being watched closely, but the October business was great, and was friendly for futures and the demand argument. South America will continue to move further into its growing season, which will intensify the focus on their weather market with the extended forecast looking wetter. On the January chart, support is at the $8.75 three-week low with major support down at the $8.57 contract low. First resistance is at the $8.86 1/2 50-day, then the $8.94 20-day. WHEAT: Wheat trade is 2 to 7 cents higher Wednesday morning with trade rebounding from the early 6 to 8 cents lower trade. Some short profit-taking then spillover support from the row crops has helped trade recover to the positive. Demand concerns will continue to limit upside on rallies. The USDA could lower the 2015-16 export usage estimates next Tuesday due to the light sales and shipment data. Weather questions will linger for Northern and Southern Hemisphere production coming forward, but the supplies are comfortable right now. On the Kansas City December chart, resistance was at the 20-day moving average at $4.89, which is now support. The high last week at $5 is nearby resistance here at midday. The 100---day up at $5.22 is the next major moving average to the upside. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.