DTN Midday Grain Comments 11/28 12:01

DTN Midday Grain Comments 11/28 12:01 Grains Higher at Midday Soybeans trade is higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 190. The interest rate products are firmer. The dollar index is 10 higher. Energies are mixed with crude down $0.65. Livestock trade is mixed. Precious metals are flat to higher with gold unchanged. CORN Corn trade is 3 to 4 cents higher at midday with trade finding buying again with support from soybeans and wheat. Ethanol margins are seeing pressure again with futures lower after the weekly ethanol report showed gains of 6,000 barrels per day, and stocks rose 139,000 barrels per day. 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 near term. On the December chart, we have support at the $3.55 fresh low. Resistance is at the $3.62 10-day moving average, which we have traded near on the highs of the morning. SOYBEANS Soybean trade 11 to 13 cents higher with trade moving back to the top of the recent range with growing trade optimism. Meal is $2 to $3 higher, and oil is 35 to 45 points higher. Export business has been better lately with trade seeing sales of 268,748 metric tons sold to unknown, but 180,000 metric tons canceled by China. South American continues to make good progress with limited weather concerns at this juncture. Excessive rain is 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, with talks supposedly going on ahead of the President Donald Trump/China President Xi Jinping dinner. January support is at the 20-day at $8.80 with resistance the $8.95 day high. WHEAT Wheat trade is 1 to 7 cents higher with KC trade leading this morning with trade still working to confirm a reversal. KC Wheat remains very oversold with trade moving toward a crossover again if the early gains can be sustained along with narrowing the discount vs. Chicago by another 6 cents overnight with the spread now at 33 cents from 43 Tuesday. On the December KC chart, we have support at the lows at $4.56, and resistance the 10-day at $4.70. 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.