DTN Midday Grain Comments 12/01 11:29

DTN Midday Grain Comments 12/01 11:29 Grain Mostly Lower at Midday Grain trade is mostly lower at midday despite spillover support from the outside markets. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the DOW futures up 65 points and the Nasdaq down 50. The interest rate products are higher. The dollar index is 30 lower. Energies are higher with crude up $2 after the OPEC deal came together. Livestock trade is mostly lower. Precious metals are mixed with gold down $1.60. CORN Corn trade is 4 to 6 cents lower at midday with chart pressure following lackluster exports and little fresh news. Ethanol margins remain strong with producer margins getting a boost from the lower corn, flat ethanol futures and firmer unleaded values. Corn basis should have a firm tone with the break in futures slowing farmer selling. The weekly export sales were lackluster at 761,600 metric tons. 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, support is now at the lower Bollinger Band at $4.42. SOYBEANS Soybean trade is 5 to 8 cents lower at midday with overnight strength failing to hold once again. Meal is $5 to $6 lower, and oil is 40 to 50 points higher with oil continuing to hold near the upper end of the range. South American weather will gain importance as we move into December with limited concerns in the near term. Basis should remain steady in the near term with farmer selling slowing with the rally fading. The export wire was quiet again today. The weekly export sales were good at 1.4 million metric tons of beans, 150,400 of meal, and 54,400 of oil. On the January chart trade sank below the 10-day at 10.26 this morning with the 20-day at 10.10 resistance below that. WHEAT Wheat trade continues to be mixed with Minneapolis 2 to 5 cents higher with KC and Chicago 4 to 7 cents lower. Demand for higher protein wheat should continue to support the Minneapolis side of the action. The supply overhang will continue to work against trade as well with dollar values holding near the upper end of the range, but the stronger crude should boost the ruble. Australian harvest should continue to make good progress in the near term with good yields coming in. Cooler weather should push the crop towards dormancy with the western belt remaining a bit more open on weather with most moisture concentrated in Texas. The weekly export sales were in the upper end of the range at 483,500 metric tons. On the KC 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 $4.04. 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.