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DTN Midday Grain Comments 11/22 11:32

  • 22 Nov, 2017
  • 12:24:00

DTN Midday Grain Comments 11/22 11:32 Grains Higher at Midday Beans are firm ahead of the holiday; pulling wheat and corn higher at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is lower at midday with the Dow down 50 points. The interest rate products are higher. The dollar index is 50 points lower. Energies are firmer with crude 1.00 higher. Livestock trade is higher. Precious metals are higher with gold up $8.90. CORN Corn trade is flat to 1 cent higher at midday with December trade hanging around the $3.45 level heading towards the holiday break. The weekly ethanol report showed production 1.9% higher, stocks 1.86% higher, and gasoline demand 4.61% higher. Both ethanol and corn futures are showing no real reaction with the trade around unchanged. Corn basis and carry has shown further improvement with carry getting close to 11 cents this week on the Dec to March spread; seasonally we see this improvement giving incentives to pull grain out of storage. Reminder we have regular trading hours today, and then only open at 8:30 Friday and close at 12:05 for the Holiday. On the December chart support is the 10-day at $3.42, with the low at $3.36 1/4 below that. Resistance is at the $3.48 3/4 50-day moving then the $3.58 6-week high. SOYBEANS Soybean trade is 7 to 9 cents higher at midday with January nearby trade working towards the $10 level again. Meal is $6 to $7 higher and oil is 10 to 20 points lower. South American weather looks like more of the same in the near term, with the Argentina forecast showing quite a bit of daily flux, with overall issues remaining limited for now but focus will ramp up as we head to December. Export business has been quiet for the bulk of November on the daily wire, but the firmer overnight trade likely indicated some business may be getting done. Basis has continued to firm at processors. On the January chart futures moved back above all the major moving averages, with the 20-day at $9.86 the first level of support which we are just above, and the recent high at $10.08 the next level of resistance. WHEAT Wheat trade is 1 to 5 cents higher across the three contracts at midday with trade moving back to resistance points heading towards the break. The plains look pretty warm and dry the next 7-12 days, which will attract more attention heading to dormancy. Spillover support from row crops will be needed to help with short covering with more support showing up today. Basis has firmed a bit on the plains in recent days but overall remains wide. On the December Kansas City support is the $4.13 1/2 low, with the 10-day and 20-day at $4.23, as resistance which we are challenging at midday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (SK) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.