DTN Midday Grain Comments 11/27 11:08

DTN Midday Grain Comments 11/27 11:08 Grains Mixed at Midday Mostly weaker trade ahead of December delivery, and Thanksgiving. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer with the Dow up 5. The dollar index is 20 higher. Interest rate products are firmer. Energies are weaker with crude .70 lower. Livestock trade is mostly higher. Precious metals are weaker with gold down 7.00. CORN Corn trade is 2 to 3 cents lower as we head into delivery for the December contract, along with the Thanksgiving break with early buying fading again. Ethanol margins have improved this week with rising production, up 26,000 barrels per day, with production hitting the highest levels since July, with stocks down another 236,000 barrels, staying at the lowest stocks in three years. Basis has held up well with the slow pace of harvest so far with another storm stopping harvest. South America should see areas of improvement as planting progresses, especially in Brazil with no major issues on the horizon for now. On the March contract support is the lower Bollinger Band at $3.71, with resistance the 20-day at $3.84, along with heavily oversold conditions. SOYBEANS Soybeans are flat to 2 cents higher with two-sided trade as we head towards the break with trade still trying to establish a low. Meal is flat to $1.00 higher and oil is 10 to 20 points higher. The ral remains cheap vs. the dollar with the export wire quiet so far this week. Bean basis has moved to a more sideways trend short term with pockets of firmness showing up at crushers. On the January chart, support is the lower Bollinger Band at $8.82, which we are just above at midday, which we are just above with resistance well above the market at $9.15 where the 20-day moving average, along with oversold conditions. WHEAT Wheat trade is 1 to 4 cents lower with trade trying to consolidate recent gains heading into the break with mostly softer action this a.m. The Chicago/Kansas City December spread is 97 cents with wider action so far this week, and back near the record. Chicago also holding a 40 cent premium to Minneapolis. The dollar remains in the midpoint of the range. Export business remains focused on the Black Sea again. The extended forecast hints at some relief for the drier western areas with mixed temps while the Black Sea has some short-term dryness. The March Kansas City chart support is the 20-day at $4.35, and resistance the upper Bollinger Band at $4.46. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (CZ) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.