DTN Midday Grain Comments 11/27 10:36

DTN Midday Grain Comments 11/27 10:36 Corn, Wheat Lower at Midday Trade is lower at midday in limited holiday trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are mixed with the Dow up 25 points. The interest rate products are lower. The dollar index is 30 points higher. Energies are lower with crude down $0.90. Livestock trade is mixed with cattle higher, and hogs lower. Precious metals are lower with gold down $13. Corn trade is 4 to 5 lower with general commodity weakness due to dollar strength offsetting strong export sales. Trade volume is expected to remain low on today, right now selling volume is pushing the market lower. Ethanol margins remain under pressure with the energy weakness this morning but the slipped corn futures obviously are moving along with it. Bigger downside still exists for corn as we move through the crop year if ethanol margins turn poor enough to scale back production. The weekly export sales were stronger than expected at 2.04 million metric tons accounting for the large sale to Mexico announced last week. The weak board and preholiday purchases were part of the reason. On the March chart, first support was the 10-day moving average at $3.69 which we are now below, so major support is the recently printed contract low at $3.65. Resistance is at the 20-day moving average at $3.76. Soybean trade is mixed at midday with trade seeing commercial support after decent export sales. Meal is $1 to $2 lower, and oil is 5 to 15 points higher. South American weather brings some rains late this week, and a wetter extended forecast for some areas but some holes are likely to remain in Brazil. Soybeans basis has been fairly quiet in recent days, with no major moves. If Argentina drops export taxes more soybeans could move onto the world market in the near term but there appears to be some near term political hurdles to accomplishing this. The weekly export sales were good at 1.17 million metric tons of beans, 254,900 of meal, and 12,800 of oil. On the January chart, support is now the 20-day moving average at $8.67 with resistance at $8.81, then 50-day then $9.21-$9.24 which is the area of the 100-day and three-month high. We noted the key reversal and outside day with a higher close on Monday night; that upside momentum remains in play. If we can close above the 20-day, and preferably close higher on today, it will give us two daily closes above the 20-day which may also bring in chart buying Sunday night. Wheat trade is 2 to 12 cents lower across three contracts this morning with Minneapolis contract leading the trade on spread action again, with the dollar moving to new highs limiting the upside. Russian conditions should improve this week heading towards dormancy, with no major cold threats in the near term. Egypt bought French wheat with their tender earlier in the week. Weekly export sales were soft at 303,700 metric tons. Winter storms will bring moisture so some wheat country the next few days. On the December Kansas City chart support is at the new contract low printed Monday at $4.49 with resistance at the $4.73 20-day moving average. 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.