DTN Midday Grain Comments 11/08 11:07

DTN Midday Grain Comments 11/08 11:07 All Grains Higher at Midday Trade is sharply higher at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 80 points. The interest rate products are higher. The dollar index is 4 points lower. Energies are mixed with crude up 0.03. Livestock trade is higher. Precious metals are mostly higher with gold down $1.00. CORN Corn trade is 8 to 11 cents higher at midday with strong buying developing at midday following the lead of the soybean trade along with support from strength in the Chinese corn markets overnight. Election day could trigger more volatility in the overnight session. 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 with ethanol futures holding up well. The weekly harvest progress was 86% complete, 1% better than average. On the December contract support is the 50-day at $3.40 which is the lowest major moving average, with trade moving through the 10-day and 20-day at $3.50 at midday, with further resistance the 100-day at $3.57. SOYBEANS Soybean trade is 17 to 21 cents higher at midday with commercial buying supporting trade as demand remains very strong. Meal is $6 to $7 higher, and oil is 60 to 70 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. Harvest was pegged at 93%, 2% better than average with progress slowed slightly by some rains on remaining territory. Planting should continue to move along in South America with the near term weather threats limited. The daily export wire remained active to start the week with the Dominican Republic buying 116,100 of soy meal. On the January soybean chart support is at the 10-day at 10.03 which we moved above overnight, with the upper band of resistance at $10.28. WHEAT Wheat trade is 7 to 10 cents higher across the three contracts this morning with spillover support from the row crop trade. The weekly condition report was steady at 58% good to excellent, 9% poor to very poor, with 91% planted 1% behind average, with 79% emerged, 1% above average. The weather forecasts are viewed as neutral at this juncture with above normal temperatures expected to continue. Trade is back at the upper end of the recent range with follow through needed for a pattern change. On the Kansas City December chart support is at the recent three-week low printed Monday at $4.05, with $3.97 below there. The two-month high at $4.28 1/4 is key resistance, with trade moving back above the 10,20, and 50-day moving average clustered at $4.14. 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.