DTN Midday Grain Comments 11/06 11:31

DTN Midday Grain Comments 11/06 11:31 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 U.S. stock markets are mixed with the Dow futures down 50 points. Interest rate products are higher. The U.S. dollar index is 120 points higher. Energies are mixed with crude down $.75. Livestock trade is mixed. Precious metals are lower with gold down $17. CORN: Corn futures are 2 to 4 cents lower at midday with selling picking up during the day session and a stronger dollar after a better-than-expected jobs report. Energy values continue to move in the middle of the recent range, keeping margins stable. As long as ethanol is at a premium to unleaded, it should limit blending, although the gap has recently narrowed a bit. Corn basis remains strong in the east, with the west showing some improvement despite clogged elevators. On the December chart, support is at the $3.72 October low, then the $3.57 contract low. Upside resistance at this juncture is the 20-day at $3.79. SOYBEAN: Soybean futures are narrowly mixed at midday, with meal $1 to $2 lower, and oil 5 to 15 points higher. With the USDA report looming next Tuesday, production estimates are expected to stay strong with a steady to slightly higher estimate expected. The Chinese soybean prices were lower this week as well with the export market being quiet for the bulk of the week. South America will continue to move further into its growing season, which will intensify the focus on having better rains in the extended forecast. On the January chart support is down at the $8.57 contract low, which was tested Friday morning. First resistance is at the $8.86 1/2 50-day, then the $8.94 20-day. WHEAT: Wheat futures are mixed at midday with trade holding up well in front of the stronger dollar. Spread trade has been more favorable to the Kansas City contract Friday morning, but the spread to Chicago remains exceptionally wide. Demand concerns will continue to limit upside on rallies, and the Chicago contract is fairly overbought. The USDA could lower the 2015-16 export usage estimates next Tuesday due to 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 KC December chart support are the recent lows at $4.75, while the resistance is the 10-day and 20-day moving averages at $4.88. 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.