DTN Midday Grain Comments 11/05 11:19

DTN Midday Grain Comments 11/05 11:19 Grains Lower at Midday Trade is lower across the board at midday with soybeans leading the way. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is lower with the Dow futures down 50 points. The interest rate products are higher. The dollar index is 7 points higher. Energies are lower with crude down $0.35. Livestock trade has cattle sharply lower and hogs mixed. Precious metals are lower with gold down $1. CORN: Corn trade is 4 to 6 cents lower at midday with trade continuing to stay in the lower part of our recent trading range, albeit testing our two-week lows at midday. Ethanol margins remain steady for the producer and under pressure for the blender with the weak unleaded values, with ethanol futures easing this past week versus unleaded, but remain at a premium. As long as ethanol is at a premium to unleaded it should limit blending. Corn basis is expected to show further improvement in the east, while the end of harvest in the west will continue to put storage at a premium with most elevators moving toward piles. The weekly export sales were disappointing at 556,000 metric tons. On the December chart, support is at the $3.72 October low. Upside resistance at this juncture is the 20-day at $3.79. SOYBEANS: Soybean trade is 14 to 18 cents lower with significant selling during the day session after poor exports. Meal is $5 to $6 lower, and oil is 50 to 60 points lower. With the USDA report looming next Tuesday, production estimates are expected to stay strong with a steady to slightly higher production number expected. The weekly export sales were lower than the past several weeks at 655,600 metric tons. Meal was 246,200 metric tons, and oil was 36,200 mt. The lower sales were not a shock, but are a negative factor today. The daily announcements had slowed down last week, and remain limited. South America will continue to move further into its growing season, which will intensify the focus on their weather market. On the January chart, support is 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 3 to 8 cents lower across the three contracts at midday with a small setback after the strength shown Wednesday. Spread trade continues to favor the Chicago contract. Demand concerns will continue to limit upside on rallies, but it looks like Saudi Arabia may be in the process of securing more supplies. USDA could lower the 2015-16 export usage estimate 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. The weekly export sales were very disappointing at 84,200 metric tons. On the KC December chart support is the 20-day moving average at $4.88, which we are chopping around 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.