DTN Midday Grain Comments 11/03 11:13

DTN Midday Grain Comments 11/03 11:13 Grains Trending Lower at Midday Soybeans lead trade lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is steady to firmer this morning with the Dow up 15 points. The interest rate products are lower. The dollar index is 25 higher. Energies are mixed with crude down 0.05. Livestock trade has cattle sharply higher, and hogs mixed. Precious metals are lower with gold down $10.30. CORN Corn trade is 2 to 3 cents lower at midday with trade fading below $3.50 with spillover pressure from the soybeans. Ethanol margins have narrowed slightly with the firmer corn trade, but ethanol and blender margins are still ok, with ethanol futures taking a good step forward today. Harvest progress should continue at a good clip into the weekend with down corn the biggest issue in the near term. Basis and carry remain soft with harvest pressure still making its presence felt with better action in areas where harvest is wrapping up. On the daily wire the USDA announced that South Korea bought 135,000 metric tons of corn, while Mexico bought 102,400, and 251,000 of milo went to unknown. On the December chart support is at the $3.42 1/2 low with resistance at the $3.51 50-day moving average which we are just below overnight then the $3.58 6-week high. SOYBEANS Soybean trade is 9 to 12 cents lower at midday with selling picking up during the day session. Meal is $3 to $4 lower and oil is 35 to 45 points. South American weather continues to be non-threatening in the immediate term with planting continuing to expand. Soybean basis has remained mostly steady with carry steady with the market transitioning to post harvest footing. The daily wire was quiet again for soybeans, which is raising some concern. On the January chart, the 200-day at $9.82 is support with trade hanging around the 10-day and 20-day at $9.88-90 at midday, with 10.00 the next level of resistance which we tested yesterday. WHEAT Wheat trade is narrowly mixed at midday with trade trying to fight off the spillover pressure from the row crops. The dollar has pulled back from the 95 area on the index, but remains at the upper end of the recent range with firmer action this morning. Iraq bought 300,000 metric tons of hard red wheat on the daily wire. The Southern Hemisphere crop will continued to be watched with wet weather hitting the flood damaged areas again. Australia will continue to draw more attention coming forward as well, with the winter wheat areas of the Black Sea off to a generally dry start. Planting should be wrapping up in the US with mixed weather coming forward and slow emergence from chilly temps. On the December Kansas City support is at the $4.14 low scored this yesterday with resistance the 20-day at $4.28 which we are tested this morning. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.