DTN Midday Grain Comments 11/02 11:18

DTN Midday Grain Comments 11/02 11:18 Corn, Soybeans Higher at Midday; Wheat Narrowly Mixed Trade is flat to higher at midday after overnight gains failed to hold. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 80. The interest rate products are firmer. The dollar index is 5 higher. Energies are weaker with crude down $0.35. Livestock trade is mostly lower. Precious metals are mixed with gold down $3.10. CORN Corn trade is 2 cents higher at midday with light two-sided action so far with lessening harvest pressure into the weekend. Ethanol margins remain poor with the firmer corn trade and cheaper energy complex, with both producer and blender margins narrowing. However, ethanol futures are slightly firmer Friday morning. Basis should remain sideways to soft as harvest should make good progress into the weekend. USDA announced 200,900 metric tons of corn sold to Mexico. On the December chart, support is at the 50-day at $3.63, an area that has held the past few days. Support below here is the Lower Bollinger Band at $3.60. Resistance is at the 20-day and 100-day at $3.67-$3.68, which we are testing at midday, then the recent $3.78 1/2 high. SOYBEANS Soybean trade is 2 to 4 cents higher with follow-through buying from the strong move Thursday. We have come 15 cents off the overnight highs with buying getting overextended and conflicting reports on trade out of D.C. Meal is $2.50 to $3.50 lower, and oil is narrowly mixed. Soybean basis should remain steady into the last big harvest weekend. Quality concerns will linger in many areas as well. Crush margins remain strong in the near term, but have softened a touch Friday morning. The South America weather looks good in the near term. The Brazil real has gained slightly Friday morning. On the January chart, we are just above the 100-day at $8.80 with the 20-day further support at $8.73. Resistance is the overnight high at $9.00 3/4. WHEAT Wheat is narrowly mixed at midday with trade working to hold the $5 area nearby on the KC contract with some light two-sided action Friday morning. In the bigger picture, oversold conditions are still in place with another positive finish needed to confirm further turnover. The U.S. dollar is holding the losses from Thursday. Australia remains in the recent weather pattern with harvest going in some areas. Planting delays will persist on the Plains in the next week. 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 4.99, which we 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.