DTN Midday Grain Comments 11/04 11:27

DTN Midday Grain Comments 11/04 11:27 Grain Futures Mostly Higher at Midday Slow but mostly higher trade is seen at midday. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are firmer with the DOW futures up 22 points. Interest rate products are higher. The dollar index is 15 points lower. Energies are lower with crude down .70. Livestock trade is lower. Precious metals are higher with gold up $3. CORN Corn futures are a penny higher at midday in slow trade; the daily range has been 4 cents. The trade is starting to focus on the WASDE due out next Wednesday, but most are not expecting much change. The report will remind us of our growing domestic and global grain stocks. The good weekly export sales number Thursday and the continued good ethanol production margins will keep demand strong and limit the downside. Many traders are talking about a sideways market the rest of the year until we get into the heart of South American growing weather. Light harvest selling may turn corn red this afternoon along with some chart selling due to the negative chart move. On the December contract support is the 50-day moving average at $3.40 which is the lowest major moving average. Resistance is the $3.50 1/2 20-day moving average then the 100-day at $3.57. On Tuesday we moved below the 20-day and we have stayed below it which is a negative chart item so we should view this level as important resistance now as well as expect sizeable buy stops above it. SOYBEANS Soybean futures are 2 cents higher in slow trade, but the product trade is more active Friday. Bean oil is down nearly 50 points and meal is up $3 here at midday. Beans have only had around a dime range so far and we are in the upper end of it at midday. The market slipped Tuesday-Wednesday but has been sideways since in the lower part of our 2-week range. Beans tested the lowest major moving averages on Wednesday so the chart picture is negative, but market bulls are hopeful since the support areas have held. So there are mixed views looking at this afternoon. Fundamentally the soybean harvest is nearly completed with most expecting a steady to slightly higher production number on the WASDE next week. On the January soybean chart support is at the 200-day moving average at $9.86. Resistance is the 10-day day at 10.03. Expect sell stops below the 200-day. WHEAT Wheat futures are a penny lower to a penny higher at midday. KC December has had a nickel range and we are in the middle of that range at midday. New lows for the move were seen but then the selling dried up. So the sideways action continues. The poor weekly sales number Thursday limited upside and limits optimism looking to the WASDE next week. No one will be looking for much change from the burdensome USDA supply side numbers. On the KC December chart support is at the recent 3-week low printed this morning at $4.07, with $3.97 below there. The 2-month high at $4.28 1/4 is key resistance. 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.