DTN Midday Grain Comments 11/06 12:55

DTN Midday Grain Comments 11/06 12:55 Grains Trending Lower at Midday Corn is 1 to 2 cents lower, soybeans are narrowly mixed, and wheat is 3 to 5 cents lower. David M. Fiala DTN Contributing Analyst The U.S. stock market is mixed with the Dow down 12. The dollar index is 30 points lower. Interest rate products are weaker. Energies are weaker with crude down $1.30. Livestock trade is mixed with cattle leading. Precious metals are higher with gold up $5.00. CORN Corn trade is 1 to 2 cents lower after early strength with trade needing another bullish spark to push higher after the mid-week rally. Ethanol margins will remain tight for producer and blender but driving demand has shown some improvement this week to date. Basis remains generally strong. The daily export wire showed some of the expected sales with 206,900 metric tons sold to unknown. On the December contract, support is the 20-day at $4.05 with the recent high at 4.22 1/4 as resistance. SOYBEANS Soybeans trade is narrowly mixed at midday with weaker spread action as trade tries to extend sharp rally into the weekend with trade watching South American weather and export sales as we saw 30,000 of oil to South Korea, and 132,000 metric tons beans to China, and 272,150 to unknown. Meal is $4.00 to $5.00 lower and oil is narrowly mixed. South America has more dry pockets building but will see moisture over some areas. 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 the fresh high at 11.12 3/4 scored Thursday, with support the 20-day at $10.66. WHEAT Wheat trade is 3 to 5 cents lower with weaker action developing this after early strength with little fresh news. 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 with Egypt active the last couple of days. Kansas City is at 48-cent discount to Chicago with spreads headed to the lower end of the range, while Minneapolis is back to 48 cent discount as well. Kansas City December chart resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.53, 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.