DTN Midday Grain Comments 11/17 10:53

DTN Midday Grain Comments 11/17 10:53 Corn, Soybeans Higher; Wheat Lower at Midday Corn is 3 to 4 cents higher, soybeans are 17 to 20 cents higher and wheat is 3 to 7 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 170. The dollar index is 20 points lower. Interest rate products are higher. Energies are weaker with crude off $0.40. Livestock trade is higher with hogs leading. Precious metals are weaker with gold down $2. CORN: Corn trade is 3 to 4 cents higher at midday with stronger spread action and spillover support from soybean trade building on the strong finish from Monday. In addition, 195,000 metric tons of corn was sold to Mexico. Ethanol has lost some ground to unleaded, reducing the premium, while margins remain fairly stable with short-term demand the biggest issue. Basis remains generally strong with river basis becoming erratic again with barge availability in question. Corn harvest is 95% complete vs. 87% on average. On the December contract, support is the 20-day at $4.10 with the lower Bollinger band at $3.94 as the next level down. The recent high at $4.28 is resistance. SOYBEANS: Soybeans trade is 17 to 20 cents higher overnight, with firmer spread action. Fresh highs are being scored again with broad buying interest building off the strong finish Monday with plenty of talk of China buying, which remains unconfirmed by USDA so far. Meal is $8 to $9 higher, and oil is flat to 10 points lower. NOPA crush was a record for October at 185 million bushels vs. 177 mb expected. South America has some dry pockets building with Brazil looking to see more relief short term. Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels. Freight issues are popping up on the river system, hurting basis there. Harvest was pegged at 96% complete vs. 89% on average. The January chart has resistance at the fresh high at 11.78 1/4 scored Tuesday morning, with the upper Bollinger band at $11.76. Support is the 20-day at $10.99. WHEAT: Wheat trade is 3 to 7 cents lower at midday with Chicago action leading. Dry weather is forecast to persist for most of the Plains with better moisture for the east and slight condition improvements. The dollar remains in the low part of the range with further overnight weakness. Weekly crop conditions were mixed at 46% good to excellent and 18% poor to very poor -- both ends 1 percentage point higher on the week. Ninety-six percent of winter wheat was planted vs. 94% on average, and 85% emerged vs. 84% on average. KC is at 43-cent discount to Chicago with spreads coming off the lows. Minneapolis is at -40. KC December chart resistance is the 20-day at $5.55, which we tested before fading, and support is the lower Bollinger band at $5.37. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala Editor's Note: Be among the first to hear DTN Lead Analyst Todd Hultman's 2021 market outlook and ask him questions live by attending the DTN Ag Summit, Dec. 7-9. This year's event is virtual and as a DTN subscriber your registration is FREE. That's a $99 savings and our thanks to you for being a critical member of DTN. Our premier farmer and rancher event features markets updates from Todd and livestock analyst ShayLe Stewart as well as our annual weather outlook by Senior Ag Meteorologist Bryce Anderson. Other speakers include: U.S. Ambassador Kip Tom; Ken Eriksen and Paul Hughes of IHS Markit; Microsoft Chief Scientist Ranveer Chandra; personal development speakers David Horsager and Jon Gordon; farmers Reid and Heather Thompson; farm blogger Meredith Bernard, and many more. You can take part in it all from the comfort of your home, office or tractor cab. Register at https://nam03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.dtn.com%2Fa gsummit&data=04%7C01%7Cscott.kemper%40dtn.com%7Cac6bbb50e0fb4f3d7a1b08d88699dc5f %7Cd945da26f07f451496e79b8f78a743d0%7C0%7C0%7C637407342673182917%7CUnknown%7CTWF pbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C10 00&sdata=zi1jW0ynZUMUhIQ28h0u%2Fa6%2Bg475T5RkEAGxIVk9FI8%3D&reserved=0 and enter code DTNVIP20 to get free access. (c) Copyright 2020 DTN, LLC. All rights reserved.