DTN Midday Grain Comments 11/27 11:49

DTN Midday Grain Comments 11/27 11:49 Grains Mixed at Midday Soybeans lead at midday, corn flat, and wheat weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 50. The interest rate products are firmer. The dollar index is 30 higher. Energies are mixed with crude up $0.15. Livestock trade is mixed. Precious metals are weaker with gold down $10. CORN Corn trade is flat to 1 cent higher with trade working sideways with support from soybeans and pressure from wheat. Ethanol margins have improved with support from better DDG prices but remain poor with blender margins tighter again this morning. Corn basis should firm a bit with the winter storm limiting movement. Trade is also now heavily oversold in the near term with positive closes needed to induce short covering with the December contract going into delivery likely to keep pressure on the market. Weekly crop progress showed harvest at 94% finished, 2 percentage points behind normal. On the December chart, we have support at the $3.55 fresh low. Resistance is at the $3.62 10-day moving average. SOYBEANS Soybean trade is 12 to 14 cents higher at midday with fresh buying developing during to the day session to erase yesterday's losses. Meal is flat to $1 lower and oil is 30 to 40 points higher. Export business has been better lately with trade looking to the daily wire with the early week break with nothing showing up today. South American continues to make good progress with limited weather concerns at this juncture with excessive rain the biggest problem in Brazil with early production estimates well above the old record and cash prices in retreat locally, along with the real falling back to the lows. Trade talks will remain in focus into the weekend as well. Weekly crop progress showed harvest at 94%, 5 percentage points behind average. January resistance is at the 100-day at 8.75 which we fell below yesterday with further support at the lower Bollinger Band of $8.52. WHEAT Wheat trade is 1 to 7 cents lower with the early gains evaporating again, but the higher protein wheats are taking the lead in the spread action this morning. Kansas City wheat remains very oversold but was able to cross over yesterday with another positive close needed to confirm, while the Chicago/KC spread has shifted towards Kansas City after hitting the third-widest on record, and the widest since 2007 with Kansas City gaining 3 cents this morning. The weekly crop progress report showed planting at 95% complete, 4 percentage points behind average, and emergence at 86%, 6 percentage points behind average, with conditions 1 percentage points lower at 55% good to excellent, and 13% poor to very poor. On the December Kansas City chart we have support at the lows at $4.56, and resistance the 10-day at $4.73. 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.