DTN Midday Grain Comments 11/07 11:13

DTN Midday Grain Comments 11/07 11:13 Corn, Wheat Lower at Midday Soybeans are higher at midday; corn and wheat are lower in slow trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are sharply higher with the Dow futures up 310 points. The interest rate products are lower. The dollar index is 72 points higher. Energies are mixed with crude up 0.20. Livestock trade is mostly lower. Precious metals are mostly lower with gold down $23. CORN Corn trade is 2 cents lower due to the lower dollar and light chart pressure; the market seems like it wants to go toward the middle of our fall range ahead of the USDA report. The USDA World Agricultural Supply and Demand Estimates (WASDE) is due out on Wednesday morning, most are not expecting much change. The report will remind us of our growing domestic and global grain stocks. The ethanol production margins have been pressured by the slide in energy values but remain okay. The weekly harvest progress is expected to stay around average with less than 15% remaining. The weekly export inspections were good at 889,609 metric tons. The USDA announced 172,000 metric tons of corn sold to unknown. On the December contract support is the 50-day 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. Last Tuesday we moved below the 20-day and we have stayed below it, which is a negative chart item. SOYBEANS Soybean trade is 7 to 9 cents higher at midday with trade holding the early gains due to a big inspection number as well as light chart buying since support levels held last week. Meal is $3 to $4 higher and oil is flat to 10 points higher. Fundamentally the soybean news is mixed with good demand news; harvest is nearly completed as well as harvest pressure that comes with it. Most traders are expecting a steady to slightly higher production number on the WASDE on Wednesday. Planting should continue to move along in South America with the near term weather threats limited. The weekly export inspections were very good and added support, they were at 2.632 million metric tons, and the USDA announced 135,000 metric tons of meal sold to the Philippines, and 132,000 to China. On the January soybean chart support is at the 200-day at $9.86. Resistance is the 10-day day at 10.03. WHEAT Wheat trade is 2 to 4 cents lower across the three contracts at midday with pressure from the sharply stronger dollar along with rains catching some of Kansas. The weekly condition report is expected to be steady to 2% lower which could add some additional support on Tuesday. The weather forecasts are viewed as neutral at this juncture. The weekly export inspections were 494,154 metric tons. The sideways trend turned to sideways to lower last week, so wheat appears to be depending on spillover support from beans at midday to keep us from slipping further. On the Kansas City December chart support is at the recent 3-week low printed Friday at $4.07, with $3.97 below there. The two-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.