DTN Midday Grain Comments 11/04 10:58

DTN Midday Grain Comments 11/04 10:58 Grains Mixed at Midday Corn is 1 to 2 cents lower, soybeans are 8 to 10 cents higher, and wheat is 2 to 7 cents lower. David M. Fiala DTN Contributing Analyst The U.S. stock market is sharply higher with the Dow up 650. The dollar index is 5 points lower. Interest rate products are firmer. Energies are firmer with crude up $0.90. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold down $8.00. CORN Corn trade is flat to 2 cents lower with light two-sided trade as we remain in wait-and-see mode on the election along with softer spreads today. Ethanol margins will remain tight for producer and blender but should get a boost if the energy rebound can hold with the weekly report showing production up by 20,000 barrels per day, and stocks were up 75,000 barrels. Basis has seen some weakness as barge freight rallies but remains firm in the west. The daily export wire will be watched with some of the early-week spread strength but nothing was reported today. On the December contract resistance is the 20-day at $4.02 which we are just below, with the lower Bollinger Band at $3.84 as support. SOYBEANS Soybean trade is 8 to 10 cents higher at midday with softer spread action and nothing hitting the daily wire after the strength yesterday. Meal is $3.50 to $4.50 higher and oil is 35 to 45 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. The January chart has resistance at the fresh high at 10.88 1/2 with the 20-day at 10.61 as first support, with the lower Bollinger band at $10.37. WHEAT Wheat trade is 2 to 7 cents lower with Minneapolis leading at midday with softer spread action on the intermonth spreads. The near term weather pattern looks to warm up for the plains with moisture concentrated from the central to the east. The weaker dollar hass 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 47-cent discount to Chicago with spreads headed back to the lower end of the range, while Minneapolis is back to 50 cent discount with along with a 3 cent discount to Kansas City. Kansas City December chart resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.50, 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.