DTN Midday Grain Comments 11/10 11:43

DTN Midday Grain Comments 11/10 11:43 All Grains Higher at Midday Trade is firm at midday but we are off our highs; outside markets are leaning negative. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 140 points, but the NASDAQ down 110. The interest rate products are mixed. The dollar index is 43 points higher. Energies are lower with crude down .60. Livestock trade is higher. Precious metals are mixed with gold down $11. CORN Corn trade is a penny better at midday and we are 4 cents off our early high. This was noted as a light bounce following the negative day yesterday following larger than expected supply side numbers from the USDA on the WASDE. Last month fund and some end user buying was around following the report and quick sell off, so this is a repeat of that at this juncture. The weekly export sales were good at 1.24 million metric tons which helped give us our strength this morning. Heavy supply-side worried are lingering. On the December chart we slipped below all major moving averages yesterday, bounced back above the 50-day and lowest major moving average at $3.42 1/2 which is where we are at midday. A close below here is negative. Resistance is at the $3.48 1/2 10-day moving average. SOYBEANS Soybean trade saw an impressive rebound but as of midday we are higher but the strength is not so impressive. January beans are 7 cents higher after trading 28 cents higher. Meal is up $.50 and bean oil up 40 points. The USDA WASDE yesterday was bearish with a whopping 52.5 bushels per acre surprising most. Does a big crop even get bigger? This is a question we will not revisit with the USDA until January. The weekly export sales were good coming in just over 1 million tons for beans, 149,900 tons meal and 16,300 tons for bean oil. Good demand and huge supplies continue to battle out in our recent trading range. In the bigger picture over the past 4 months rallies over $10, similar to today, seem to find good selling interest and we have good support below $9.50. On the January chart we tested above the 100-day and picked up some buy stops going up to $10.19, but the 100-day at $10.12 remains notable support then the $10.31 high printed two weeks ago. Support is at the $9.89 200-day moving average. WHEAT Wheat trade is back to fractionally to 3 cents higher at midday, which has most contracts 7 to 9 cents off our early highs; momentum is down. The weekly export sales number was good at 769,600 helping provide support to wheat this morning along with spillover support from beans. The USDA domestic carryover came in at 1.143 billion bushels versus 1.138 October number. This remains the largest carryover domestically since the 1987-88 crop year. The global carryover also remained huge at 249.2 million metric tons. On the Kansas City December chart, support is at the recent $4.05 low with $3.97 below there. The two-month high at $4.28 1/4 is key resistance, with the 20-day at $4.16 nearby resistance which did hold this morning on our early strength. 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.