DTN Midday Grain Comments 11/23 11:26

DTN Midday Grain Comments 11/23 11:26 Corn, Beans Lower at Midday Wheat trade leads at midday with row crop slightly lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 95. The interest rate products are weaker. The dollar index is 20 higher. Energies are weaker with crude down $3.40. Livestock trade is mostly higher. Precious metals are weaker with gold down $4.00. CORN Corn trade is 2 cents lower at midday with a new low for the move hit. We do have an early 12:05 Globex close today for the holiday, plus this is December option expiration. Pressure is noted coming from light follow-through selling and from outside markets with crude down around $4 the biggest news item this morning. The ethanol blender margins are seeing pressure with unleaded off nearly a dime this morning, narrowing the ethanol/gasoline spread to 12 cents with steady ethanol futures. Corn basis should be sideways to firmer the rest of the month if the board says sideways to weaker. Trade is also now heavily oversold in the near term with another positive close needed today to induce short covering. The USDA announced 132,000 metric tons sold to South Korea. The weekly export sales were okay at 877,400 metric tons. On the December chart we have support at the $3.58 3/4 lower Bollinger Band which is a penny away at midday; we are at the lowest level since October 1st. Resistance is at the $3.65 area where we find the 10-day and 50-day moving averages. SOYBEANS Soybean trade is flat to a penny lower with light two sided trade today. Meal is $1 to $2 higher and oil is 10 to 20 points lower. Export business is in the news with another 120,000 metric tons sold to unknown. South American continues to make good progress with limited weather concerns at this juncture with excessive rain the biggest problem. Trade progress continues to get mixed signals from the administration. The weekly export sales were improved at 680,500 metric tons, meal was 229,700, and oil was 40,000 metric tons. January support is at the 100-day at 8.75 with resistance at the upper Bollinger Band at 9.03. WHEAT Wheat trade is mixed at midday with Minneapolis and Chicago higher while KC continues to be the short side of spread trade. Kansas City wheat remains very oversold on the oscillators, which should help provide support at these levels but we will need some positive action to confirm with Chicago not quite as oversold, and the Chicago/Kansas City spread still widening as it got to 33 cents this morning. The dollar is rebounding with the weak crude and stock markets. The weekly export sales were disappointing 330,400 metric tons with some soft wheat sold to Egypt yesterday. On the December Kansas City chart we have support at the lows at $4.66, and resistance the 10-day at $4.79. 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.