DTN Midday Grain Comments 11/03 11:33

DTN Midday Grain Comments 11/03 11:33 Grains Trending Higher at Midday Corn is 3 to 4 cents higher, soybeans are 13 to 15 cents higher, and wheat is flat to 5 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is sharply higher with the Dow up 680. The dollar index is 80 points lower. Interest rate products are weaker. Energies are firmer with crude up $0.85. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold up $15.50. CORN Corn trade is 3 to 4 cents higher at midday with light buying and slightly firmer spread action as we see broad commodity strength this a.m. Ethanol margins will remain tight for producer and blender but should get a boost if the energy rebound can hold. Basis has seen some weakness as barge freight rallies but remains firm in the west. The daily export wire was quiet today after the Monday sales. Harvest progress was at 82% vs. 69%. On the December contract, resistance is the 20-day at $4.02 which we are testing at midday, with the lower Bollinger Band at $3.82 as support. SOYBEANS Soybean trade is 13 to 15 cents higher at midday with strong spread action which will have trade looking for sales to hit the daily wire again although nothing was reported this a.m. Meal is flat to $1.00 higher and oil is 45 to 55 points higher. 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 with a small shipment of U.S. origin to South American. 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. Harvest progress was at 87% vs. 83% on average. The January chart has resistance at the fresh high at 10.88 1/2 with the 20-day at 10.59, which we are back above overnight becoming first resistance, making support $10.36 where we find the lower Bollinger Band. WHEAT Wheat trade is flat to 5 cents higher with overnight gains fading a bit with better moisture expected for much of the plains, while the dollar pull back should provide pretty good support. The near-term weather pattern looks to warm up for the Plains with moisture concentrated from the central to the east. The weaker dollar helped offset the ruble this a.m. but a deeper correction will be needed for exports. Middle East buyers will be watched for fresh rounds of tenders this week. Kansas City is at 52-cent discount to Chicago with spreads headed back to the lower end of the range, while Minneapolis is back to 55 cent discount with along with a 3 cent discount to Kansas City. Weekly crop progress showed winter wheat at 89% vs. 86% on average, and 71% emerged vs. 70% on average, with 43% good to excellent, and 19% poor to very poor, 2 percentage points better on the week. Kansas City December chart resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.49, then the lower Bollinger Band at $5.23 below that. 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.