DTN Midday Grain Comments 11/01 11:14

DTN Midday Grain Comments 11/01 11:14 Soybeans, Corn Lower at Midday Row crop trade is lower at midday, wheat mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow 35 points lower. The interest rate products are higher. The dollar index is 56 points lower. Energies are mixed with crude up 0.25. Livestock trade has cattle sharply higher, and hogs lower. Precious metals are higher with gold up $5.20. CORN Corn trade is 5 to 7 cents lower at midday with first of the month selling and harvest pressure weighing on trade. Ethanol margins should remain positive but have slipped with the setback in energy prices. Corn basis is still seeing some pressure in many areas as country elevators continue to fill up as harvest begins to wind down with progress reaching 75%, which is same as average. US origin feed grains remain competitive on the world market, which should help exports keep pace with 212,344 metric tons of corn sold to Mexico. The spread trade is slightly wider this morning after narrowing in recent days. On the December contract support is at the $3.49 20-day then the 50-day at $3.39 which is the lowest major moving average. Resistance is up at the $3.59 1/4 three-month high then the $3.61 100-day. SOYBEANS Soybean trade is 11 to 15 cents lower at midday with fresh selling to start the month and South American planting help to add pressure to the market. Meal is $5 to $6 lower and oil is 20 to 30 points lower. Harvest progress was 87% complete, 2% ahead of normal, which should allow for pressure to continue to fade especially with strong nearby demand. Basis should start to narrow fairly soon with the aggressive shipping pace seen so far this fall. Brazilian weather has improved for good planting progresses and early crop development, but with trade continuing to watch the longer-term forecast for signs of pattern change, with overall pace above normal. On the January soybean chart support is at the 200-day at $9.85. Resistance is the 10-day day at 10.02. WHEAT Wheat trade is mixed at mixed across the three contracts with the wheat able to separate a bit from the row crops. The dollar remains near multi-month highs, which will limit upside potential, but the setback this morning will be supportive if sustained. Weather concerns may build with the reduced acreage in the U.S., and dry weather in many of the winter wheat areas with conditions at 58% good to excellent, and 9% poor to very poor, down 1-2 percentage points from last week, with 86% planted vs. 88% on average and emergence at 70% vs. 69% on average. Indian government stocks are at nine-year lows, and some frost damage may have occurred in Australia, which potentially adds support. On the Kansas City December chart support is at the recent low at $4.08, with $3.97 below there. The two-month high at $4.28 1/4 is key resistance as the 10,20, and 50-day are clustered in the 4.13-4.17 range. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at dfiala@futuresone.com Follow Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.