DTN Midday Grain Comments 11/15 11:22
Grains Higher at Midday
Soybeans lead at midday with corn and wheat firmer.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are mixed with the Dow futures down 120. The
interest rate products are weaker. The dollar index is 38 higher. Energies are
mixed with crude up $0.80. Livestock trade is firmer. Precious metals are
firmer with gold 3.50 higher.
Corn trade is 2 to 3 cents higher at midday with light buying with action
following the lead of the soybeans. The weekly ethanol report had production
1,000 barrels per day lower with production runs remaining stubbornly higher,
with stocks growing 364,000 barrels. The weekly export sales report delayed
until Friday. Basis will likely remain fairly sideways in the near term. On the
December chart, support is at the 50-day at $3.65, with the 10-, 20-, and
100-day just above the market at $3.67-70, which we are testing at midday.
Soybean trade is 7 to 9 cents higher at midday with trade fading a bit over
the course of the morning. Meal is flat to $1 higher and oil is 5 to 15 points
higher. Export business has shown life this week, but nothing hit the daily
wire after the strong overnight action. Basis should remain mostly steady as
harvest pressure wraps up. South American continues to make good progress early
in the crop year. Support is found at the $8.75 area where we find the 100-day
moving average. Resistance is up at $9 then the $9.06 three-month high.
Wheat trade is flat to 5 cents higher with short covering again overnight,
and more mixed action during the day session. Chicago is gaining vs. the KC
again today with the spread hitting new levels of width. Kansas City wheat
remains near oversold on the oscillators, which should help provide support at
these levels. The dollar remains near the high end of the range with trade
rebounding after the Fed comments yesterday and Brexit issues. On the December
Kansas City chart we have support at the lower Bollinger Band at $4.81, and
resistance the 10-day at $4.97.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser
He can be reached at email@example.com
Follow him on Twitter @davidfiala
Copyright 2018 DTN/The Progressive Farmer. All rights reserved.
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