DTN Midday Grain Comments 11/01 11:19

DTN Midday Grain Comments 11/01 11:19 Soybeans Lead Grains Higher at Midday Soybeans rose sharply higher after President Donald Trump commented on trade with China. Beans are pulling corn and wheat higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 210. The interest rate products are weaker. The dollar index is 75 lower. Energies are weaker with crude down $1.20. Livestock trade is mixed. Precious metals are firmer with gold up $19. CORN Corn trade is 4 to 6 cents higher at midday with trade firming on the back of the soybean move. Ethanol margins remain poor with the firmer corn trade and cheaper energy complex. The negative margin situation has limited ethanol futures, remaining at the lower end of the range even with the stocks draw Wednesday. Basis should remain sideways to soft as harvest should make good progress into the weekend. The weekly export sales remained soft at 394,400 metric tons. On the December chart, support is at the 50-day at $3.63, which has held the past few days. Support below here is the Lower Bollinger Band at $3.60. Resistance is at the 100-day at $3.68, which we are testing at midday, then the recent $3.78 1/2 high. SOYBEANS Soybean trade is 25 to 30 cents higher with trade taking off after President Donald Trump commented that trade progress was made with China. Meal is $5 to $6 higher, and oil is 30 to 40 cents higher. Soybean basis has shown some improvement this week as harvest winds down. Quality concerns will linger in many areas as well. Crush margins remain strong in the near term, with products moving sharply higher Thursday. The South America weather looks good in the near term. The Brazil real has gained slightly Thursday morning. The weekly export sales were mixed with 395,800 metric tons of beans, 317,400 mt of meal, and 22,200 mt of oil. On the January chart, we are just below the 100-day at $8.80 at midday with the 20-day becoming support at $8.73. WHEAT Wheat is 3 to 8 cents higher at midday with trade trying to build on the strong finish Wednesday with support from the sharply weaker dollar and row-crop action. In the bigger picture, oversold conditions are still in place with the failure to confirm the late last week reversal leading to the retest of the lows Wednesday. A couple of positive days are needed to confirm a turn. The U.S. dollar has broken sharply lower overnight and is overbought. Australia remains in the recent weather pattern with harvest going in some areas. Planting delays will persist on the Plains in the next week. The weekly export sales were stronger at 582,500 metric tons. On the December KC chart, we are below all major moving averages. The lower Bollinger Band at $4.86 is support with the first level of resistance the 10-day at 5.01, which are just above at midday, with the 20-day at $5.11 above that. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.