DTN Midday Grain Comments 11/02 11:07

DTN Midday Grain Comments 11/02 11:07 Corn, Beans Higher at Midday Corn is 4 to 5 cents lower, soybeans are 5 to 6 cents lower, and wheat is 3 to 10 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 400. The dollar index is 11 points higher. Interest rate products are mostly higher. Energies are mixed with crude up $0.30. Livestock trade is weaker. Precious metals are firmer with gold up $11.50. CORN Corn trade is 3 to 4 cents lower at midday with broad weakness in the ag markets to start the week with little fresh bullish news with momentum turning lower last week, although 204,000 metric tons hit the export wire for unknown. Ethanol margins remain stable with corn and energies fading and blender margins losing ground as unleaded approaches $1.00 on the board. Basis has seen some weakness as barge freight rallies but remains firm in the west. Weekly export inspections were in line with recent weeks at 721,263 metric tons, with harvest progress expected to be well ahead of normal. On the December contract resistance is the 20-day at $4.01, with the lower Bollinger Band at $3.80 as support. SOYBEANS Soybean trade is 5 to 6 cents lower at midday with trade seeing broad selling and wider spreads short term with January/March remaining inverted and a little bit of two-sided action. Meal is $1.00 to $2.00 lower, with oil 30 to 40 points lower. Brazil should continue to make planting progress with the better rains short term for most, while Argentina has seen a little more mixed weather and continued slow farmer movement. Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels with freight issues likely to pop up. Weekly export inspections in the area of 2.08 million metric tons, with harvest progress down to the homestretch. The January chart has resistance at the fresh high at 10.88 1/2 with support the 20-day at 10.58 which we closed just below Friday, making the next support at $10.33 where we find the lower Bollinger band. WHEAT Wheat trade is 3 to 10 cents higher at midday with winter wheats leading, especially Kansas City. The near-term weather pattern looks to warm up for the Plains to support growth with moisture still short in many areas. The ruble action continues to favor Russia a bit in the export markets with the recent dollar strength along with Australia harvest expanding. Middle East buyers will be watched for fresh rounds of tenders this week. Kansas City is at 55-cent discount to Chicago with spreads headed back to the lower end of the range, while Minneapolis is back to 45 cent discount with very active spread action on going. Weekly export inspections were soft at 287,059 metric tons, with weekly crop progress showing drilling nearly wrapped up, and steady to slightly better conditions nationally. Kansas City December chart resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.47 which we are back above at midday, then the lower Bollinger Band at $5.20. 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 (c) Copyright 2020 DTN, LLC. All rights reserved.