DTN Midday Grain Comments 11/02 11:22

DTN Midday Grain Comments 11/02 11:22 Corn, Soybeans 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 15 points lower. The interest rate products are lower. The dollar index is 43 points lower. Energies are lower with crude down 1.35. Livestock trade is flat to higher. Precious metals are mixed with gold up $17.40. CORN Corn trade is 2 to 3 cents lower at midday with light follow-through selling, outside market pressure and light spillover pressure form beans. Ethanol margins should remain positive but have slipped with the setback in energy prices. The weekly EIA report showed production 3.13% higher, and stocks .90% lower, and gasoline demand 0.71% higher. This should support ethanol. Corn basis is still seeing some pressure in many areas as country elevators continue to fill with harvest in the homestretch. U.S. origin feed grains remain competitive on the world market. Crude is down and unleaded down 4 cents a gallon giving some outside market pressure but ethanol is holding up better than unleaded futures. On the December contract support is the 50-day at $3.39 which is the lowest major moving average. Resistance is the $3.49 20-day moving average, then the 10-day at $3.51. SOYBEANS Soybean trade is 5 to 8 cents lower at midday with selling returning after some light early strength. Meal is $2 to $3 higher and oil is narrowly mixed. Basis should start to narrow fairly soon with the aggressive shipping pace seen so far this fall with harvest winding down. 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 the second week out showing more moisture. Bean oil stocks were 7% below last year on yesterday's crush report, but higher than expected, but overall crush is strong. The USDA announced 132,000 metric tons sold to China. On the January soybean chart support is at the 200-day at $9.85. Resistance is the 10-day at 10.02. WHEAT Wheat trade is mixed at midday with trade holding up despite spillover pressure from the row crops. The weaker dollar and lingering weather concerns are noted supporting wheat. The dollar has extended its slide from yesterday . Weather concerns may build with the reduced acreage in the US, and dry weather in many of the winter wheat areas with conditions along with above normal temperatures. The forecast looks improved for West Texas and Oklahoma but other areas may continue to miss out. 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 2 month high at $4.28 1/4 is key resistance. At midday the futures are at $4.15, which is in the middle of the $4.14-4.16 area where the 10-day, 20-day and 50-day are clustered. 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.