DTN Midday Grain Comments 11/28 11:29

DTN Midday Grain Comments 11/28 11:29 Grains Mixed at Midday Trade is mixed at midday with volatile soybean trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 55 points and the S&P down 10. The interest rate products are lower. The dollar index is 25 lower. Energies are higher with crude up 1.00. Livestock trade is mixed. Precious metals are higher with gold up $12. CORN Corn trade is flat to 2 cents lower at midday with trade working sideways to start the week despite some good spillover support from beans. Ethanol margins remain very good which should continue to support production/corn demand. Ethanol futures are mixed with unleaded up today, but board margins are steady. Ethanol export demand in 2017 will be watched closely as it may be the key to continued positive production margins. Corn basis should stay steady to firmer this week. The weekly export inspections were good at 800,967 metric tons. On the March chart support is at the $3.54 level where we find the 100-day and 20-day, resistance is at the $3.69 4-month high then the 200-day at $3.76. December futures move into delivery this week. SOYBEANS Soybean trade is flat to 3 cents higher at midday with trade turning two sided after trading 20 higher overnight on initial strong fund demand. Meal is $1 to $2 higher, and oil was 10 to 20 points lower. South American weather will gain importance as we move into December with major concerns limited for the moment. Basis should continue to hold up with strong nearby demand for beans and products pushing the board higher; the spike this morning may provide some short term basis pressure with active end user procurement this morning. The weekly export inspections remain strong at 2.09 million metric tons. On the January chart trade put in a new at $10.65 overnight which is now nearby resistance, with trade well above the 10-day and highest moving average at $10.13. WHEAT Wheat trade is mixed at midday with Minneapolis wheat leading as it moves 4 to 7 higher and Chicago wheat struggling the most, down 2 to 5 cents. The supply overhang will continue to work against trade as well with dollar values remaining elevated with the dollars attempt to break sharply lower fizzling. Export business continues to go to the Black Sea with the US finding some better business lately. Australian harvest is well underway as well with good results so far. Cooler weather should limit moisture stress on the western plains, with the extended forecast trying to introduce more rain. The weekly export inspections were disappointing at 221,895 metric tons. Conditions are expected to be steady on the weekly report. On the KC March chart, trade has support at 10-day and 20-day at $4.27-4.28 area, with the 50-day at $4.30 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.