DTN Midday Grain Comments 11/11 11:25

DTN Midday Grain Comments 11/11 11:25 Soybeans Sharply Lower at Midday Soybeans are sharply lower at midday, 35 cents off the early morning high. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 40 points. The interest rate products are closed for Veterans Day. The dollar index is 26 points higher. Energies are lower with crude down 1.50. Livestock trade is higher. Precious metals are lower with gold down $40. CORN Corn trade is 3 cents lower at midday due to spillover pressure from beans and limited fresh supportive news. The dollar is at a new high for the move and crude is at a new low, which is also providing outside market pressure. Spread trade has remained stable with a balance of new crop still coming in and good recent demand. But as new-crop bushels finish getting put away, the market may begin to take carryout of the futures as we get closer to December if demand stays consistently strong, which all indications are positive. Ethanol margins are stable. On the December chart, we are just below the 50-day and lowest major moving average at $3.42 1/2. A weak close today could set up further selling on Sunday night, especially if the $3.39 area fails to hold. Resistance is at the $3.48 1/2 10-day moving average. SOYBEANS Soybean trade is 18 to 22 cents lower at midday with trade slipping aggressively around and after the opening of the day session; the market found strength early last night, so our midday action is bearish with another wild day and a new low for the move. Meal is $5 to $6 lower, and oil is 50 to 60 points lower here at midday. The rush of fund money to soybeans and metals has evaporated this morning, and veg oil values faded off the overnight highs in China. In the bigger picture over the past four 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 $9.78 50-day moving average. WHEAT Wheat trade is mixed at midday with Minneapolis wheat leading, and Chicago trade the weakest. The dollar is inching above the recent trading range this morning, which is a negative item for grains. It is yet to be determined if this will weaken export activity; export sales have been great so far this crop year. The western wheat belt remains pretty open weather-wise in the near term, which will need to be watched along with very dry conditions in the southeast. Russia won the export tenders to North Africa again today. On the KC 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. 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.