DTN Midday Grain Comments     11/12 11:36

   Wheat, Corn Higher at Midday

   Row crops mixed at midday, and wheat firmer. 

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are weaker with the Dow futures down 450. The 
interest rate products are closed for Veterans Day. The dollar index is 60 
higher. Energies are firmer with crude up $0.55. Livestock trade is mixed. 
Precious metals are lower with gold down $4.10. 

   CORN

   Corn trade is 1 to 2 cents higher to open the week with light two-sided 
action at midday. Ethanol margins will remain poor which should continue to 
work weekly production runs lower deeper into winter with ethanol futures 
edging marginally higher today. The weekly export inspections are expected to 
be in the range of 700,000 to 1.0 million metric tons when released tomorrow 
due to the holiday. The weekly crop progress report should show harvest 
entering the final stretch. Basis will likely remain fairly sideways in the 
near term. On the December chart support is at the 10, 20, and 100-day moving 
averages in the $3.67-3.70 area with resistance the recent $3.79 high. 

   SOYBEANS

   Soybean trade is 3 to 5 cents lower at midday with rangebound action 
continuing to start the week. Meal is flat to $1 higher, and oil is 5 to 15 
cents higher. Crush margins remain strong, which is probably the biggest 
supportive factor as the export program remains slow, and South America is off 
to a good start. The weekly export inspections are expected to be in the range 
of 800,000 to 1.1 million metric tons range when released tomorrow. The weekly 
crop progress should show harvest effectively complete. Support is found at the 
$8.75 area where we find the 10, 20, and 100-day moving averages. Resistance is 
up at $9 then the $9.06 3-month high.   

   WHEAT

   Wheat trade is 3 to 13 cents higher at midday with Chicago trade the upside 
leader and Kansas City the laggard. Euro prices bounced with cold stress 
reported in France. Kansas City was the weakest the past two sessions with 
nothing supportive on the WASDE report which has the market again testing the 
lows. Wheat is back to near oversold conditions which should trigger some 
support. The dollar scoring new highs again overnight will limit upside again. 
Weekly export inspections are expected to be in the range of 400,000 to 600,000 
metric tons. The weekly crop progress report will be expected to show good to 
excellent around 50%, with planting and emergence still lagging. On the 
December Kansas City chart we have support at the lower Bollinger Band at 
$4.82, and resistance the 10-day at $4.98.

   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


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