DTN Midday Grain Comments 11/05 11:05

DTN Midday Grain Comments 11/05 11:05 All Grains Higher at Midday Corn is 8 to 9 cents higher, soybeans are 18 to 20 cents higher, and wheat is 7 to 10 cents higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is sharply higher with the Dow up 550. The dollar index is 75 points lower. Interest rate products are weaker. Energies are weaker with crude down $0.70. Livestock trade is mixed with hogs leading. Precious metals are sharply higher with gold up $54.00. CORN Corn trade is 6 to 8 cents higher at midday with trade following the lead of soybeans and moving back to the upper end of the range. Ethanol margins will remain tight for producer and blender but should get a boost if the energy rebound can continue. 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 but we did see 106,000 metric tons of sorghum to China. Weekly export sales were strong at 2.61 million metric tons of old crop, and 554,000 of new. On the December contract support is the 20-day at $4.04 with the recent high at 4.22 1/4. SOYBEANS Soybeans trade is 18 to 20 cents higher at midday with the January contract scoring fresh highs while spreads remain flat to soft with the expectation of further export business to be announced soon with 33,000 of soyoil hitting to India. Meal is $4.50 to $5.50 higher and oil is 100 to 110 points higher. Brazil should continue to make planting progress with the better rains short term for most, with more mixed weather to the south with some dry pockets building. 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 sales remained solid at 1.53 million metric tons of beans, 331,600 of meal, and 6,800 of oil. The January chart has resistance at the fresh high at the fresh high at 11.12 3/4 scored overnight, with support the 20-day at $10.65. WHEAT Wheat trade is 7 to 9 cents higher with trade following the lead of the row crops along with support from the dollar break. The near-term weather pattern looks to warm up for the Plains with moisture concentrated from the central to the east. The weaker dollar will improve export competitiveness if sustained here. Middle East buyers will be watched for fresh rounds of tenders this week. Kansas City is at 49 cent discount to Chicago with spreads headed at the lower end of the range, while Minneapolis is back to 54 cent discount with along with a 5 cent discount to Kansas City. Weekly export sales were ok at 597,100 metric tons. 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.