DTN Midday Grain Comments 11/18 11:45

DTN Midday Grain Comments 11/18 11:45 All Grains Lower at Midday It is a red midday with beans touching double-digit losses. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 120 points. The interest rate products are mixed. The dollar index is 10 points higher. Energies are mixed, crude is down $0.30. Livestock trade is sharply higher. Precious metals are lower with gold down $1. CORN Corn trade is 2 to 3 cents lower at midday after trading a few cents higher overnight. The USDA monthly report held increases in the production number and carryover keeping buyers away on our light attempt to bounce this week. We are seeing more gas pumps in the country down near or below $2, which should help overall gasoline demand. The falling energy prices along with lower corn trade have pulled ethanol futures down, plus chart pressure is noted. The higher ethanol prices versus unleaded are leading to less ethanol discretionary usage. The weekly EIA report had ethanol stocks up 2.15, production down 0.71% with gasoline actually down 3.56% on the week. This has pressured ethanol versus unleaded today. Corn basis remains stable to firm with reluctant farmer selling on weakness. On the chart, first resistance is the 10-day moving average at $3.64, and then the 20-day at $3.72. Support is the new contract low printed last week at $3.56, then $3.50. SOYBEANS Soybean trade is 6 to 10 cents lower at midday which has the futures near the contract lows. Meal is down $4 and bean oil down 25 points. The dollar is higher with new highs for the move yesterday and again today; this is giving outside market pressure, but also supporting a bear trend in the grains both technically and macro-fundamentally. Favorable forecasts for Brazil remain for the near term, with 15% of the acreage classified as dry. Planting progress is near normal overall in South America. Trade will be looking for additional export sales confirmations on the daily reporting as the Thanksgiving holiday approaches with limited fresh news expected. On the January chart, first support is at the $8.50 contract low. Resistance is the 20-day moving average at $8.73. WHEAT Wheat trade is 2 to 5 cents lower at midday due to spillover pressure from the row crops. The higher dollar is also noted pressuring trade. Russian conditions should improve this week heading towards dormancy, along with China slated for some rain, but there are concerns about establishment over the broader Black Sea area, along with geopolitical concerns. Some of the plains wheat gets moisture this week, but a drier pattern is expected after that. On the Kansas City December chart support is at the new contract low at $4.55 with resistance at the 10-day moving average at $4.70. 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.