DTN Midday Grain Comments 11/03 11:23

DTN Midday Grain Comments 11/03 11:23 Grain Futures Mixed at Midday Good weekly corn and soybean sales numbers lift futures, but chart selling this afternoon is a concern at midday. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are mixed with the DOW 5 points higher. Interest rate products are lower. The dollar index is 13 points lower. Energies are mixed with crude down .35 and unleaded up a penny. Livestock trade is higher. Precious metals are lower with gold down $9. CORN Corn futures are fractionally higher at midday in a very slow session with a 3-cent trading range. Trade has been mostly higher following good weekly export sales numbers, but strength is limited here which seems to favor some red trade this afternoon due to chart selling. Outside markets were friendly this morning as well, but are more neutral at midday. The weekly export sales number came in above expectations at 1.474 million metric tons. The weekly EIA report, on Wednesday, showed production 3.13% higher and stocks .90% lower on gasoline demand that was .71% higher. So demand numbers continue to be good which should support futures and keep the demand numbers high on the USDA monthly report next Wednesday. On the chart, futures closed below the 20-day moving average the past two days which is a negative chart signal. This has some concerned fund selling may be around all day, limiting upside this morning and may end up pressuring trade this afternoon. On the December contract support is the 50-day moving average at $3.39 which is the lowest major moving average. Resistance is the $3.50 20-day moving average then the 100-day at $3.57. SOYBEANS Soybean futures are 2 cents higher in slow trade at midday; meal and oil are flat after seeing higher early trade. So midday momentum seems to be down. Beans tested the lowest major moving averages Wednesday and last night follow-though selling did not show up, creating some light, short profit-taking this morning. But the trend is lower so there is still a chance the market may go after sell stops below the 7-day low printed Wednesday before the day is over. Weekly export sales were supportive. Bean sales were at 2.5 million tons, meal at 301,000 tons and bean oil sales at 21,200 tons. Beans are around 50 cents above the 6-month low and about 40 cents below the 3-month high reached last week. So it seems like the market may favor going into the WASDE next week in the middle of our fall range. On the January soybean chart support is at the 200-day moving average at $9.86. Resistance is the 10-day at 10.03. Expect sell stops below the 200-day. WHEAT Wheat futures are 2 to 4 cents lower at midday with upside momentum fading in the row crops and a poor weekly export sales number for wheat. The weekly wheat sales were only 234,900 tons; this was below the range of expectations. No one will be looking for much change from the burdensome USDA carryover numbers next Wednesday on the World Agricultural Supply and Demand Estimates. There are light weather concerns to talk about, but the market does not appear to be reacting to very much, as illustrated by our sideways trend. On the KC December chart, support is at the recent low at $4.09 1/2, with $3.97 below there. The 2-month high at $4.28 1/4 is key resistance. The $4.14-4.16 area has the 10-day, 20-day and 50-day moving averages all clustered together; the market keeps migrating around this cluster of major moving averages. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.