DTN Midday Grain Comments 11/29 11:32

DTN Midday Grain Comments 11/29 11:32 All Grains Lower at Midday Grain trade is lower across the board at midday, many contracts at the daily lows. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 25 points and the S&P up 5. The interest rate products are higher. The dollar index is 9 lower. Energies are lower with crude down 2.15 after the OPEC deal collapsed. Livestock trade is lower. Precious metals are lower with gold down $5.70. CORN Corn trade is 7 cents lower at midday with a weaker commodity environment, some chart pressure and spillover pressure from the soybean trade. Ethanol margins remain good but ethanol is falling with corn. Ethanol export demand in 2017 will be watched closely as it may be the key to continued positive production margins with sugar setting back from recent highs. Corn basis should stay steady to firmer this week if futures are flat to lower with some improvement seen in the western Corn Belt. On the March chart resistance is at the $3.54 level where we find the 10, 20, 50, and 100-day moving average that we moved below this morning, support is now the recent low at $3.50. December futures move into delivery on Wednesday. SOYBEANS Soybean trade is 10 to 15 cents lower at midday with selling returning overnight with trade unable to hold the recent gains amid the sour commodity trade today. Meal is $3 to $4 lower, and oil is 30 to 40 points lower. South American weather will gain importance as we move into December with major concerns limited for the moment. Basis should remain fairly steady with localized weakness as the rally provokes farmer selling. The export wire is quiet to start the week, and will be watched closely for further demand. On the January chart trade put in a new at $10.65 yesterday which is now nearby resistance, with trade well above the 10-day and highest moving average at $10.19. WHEAT Wheat trade is 1 to 10 cents lower with Kansas City trade seeing the most pressure with Minneapolis holding up the best on protein premiums. The supply overhang will continue to work against trade as well with dollar values holding near the upper end of the range, and the ruble sliding. Export business continues to go to the Black Sea with the U.S. finding some better business lately with some talk of freight disruption out of Russia. Australian harvest is well underway as well with good results so far with Argentina looking good as well. Cooler weather should limit moisture stress on the western plains, with the extended forecast trying to introduce more rain for Texas. The weekly winter wheat conditions were unchanged at 58% good to excellent. Progress listed 92% emerged, in line with the average. The weekly reports should be over with wheat moving into dormancy. On the Kansas City March chart, trade fell below the $$4.28 area where the 10,20, and 50-day moving averages were clustered, as they become resistance again, and support will be the recent lows at $4.19. 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.