DTN Midday Grain Comments 11/06 11:23

DTN Midday Grain Comments 11/06 11:23 Grains Higher at Midday Lightly firmer trade is seen across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is steady to firmer this morning with the Dow futures up 20 points. The interest rate products are mostly higher. The dollar index is 5 higher. Energies are firmer with crude up 0.85. Livestock trade has cattle lower, hogs mixed. Precious metals are higher with gold up $11. CORN Corn trade is flat to 1 cent higher at midday with the market looking like it wants to hang around the $3.50 level ahead of the monthly USDA report due out on Thursday. Ethanol usage is expected to stay firm, so corn demand should help limit downside as we start looking toward the end of the year. Crude is over $56 a barrel, giving outside market support. No major production changes are expected on the USDA World Agricultural Supply and Demand Estimates on Thursday; we should have trade estimates out later today. Most are not expecting much change from the 2.34-billion-bushel 2017-18 carryover seen on the October report. Harvest progress should be getting close to 70% complete with open weather continuing for much of the belt. The weekly export inspections were soft at 444,648 metric tons, which has limited upside. USDA announced 130,000 metric tons sold to unknown today. On the December chart, support is at the $3.42 1/2 low with resistance at the $3.51 50-day moving then the $3.58 six-week high. SOYBEANS Soybean trade is 1 to 5 cents higher at midday with trade firming back slightly from early weakness; range-bound trade is expected to continue ahead of the report. Meal is around $1 higher and bean oil is 5 points higher. The market will look for fresh meaningful news along with USDA changes on the monthly report this week. It is still early to get too much direction from South American weather with planting expected to be near normal. The market should be expecting a carryover number on Thursday around or just below the 430 million bushels October USDA number. Harvest is expected to be down to the last 10% on the progress number this afternoon. The weekly export inspections remained very strong at 2.49 million metric tons. On the January chart, the 200-day at $9.82 is support with trade just above the 10-day and 20-day at $9.88-90, with $10 the next level of resistance, which we tested Thursday. WHEAT Wheat trade is 1 to 5 cents higher at midday with trade working to extend the reversal seen last week. The dollar remains just below the 95 area on the index, but remains at the upper end of the recent range with firmer action today. Planting should be wrapping up in the U.S. with mixed weather coming forward and slow emergence from chilly temps. Weekly crop conditions are expected to be steady to slightly higher as emergence catches up to normal. Weekly export inspections remained very soft at 284,293 metric tons. European wheat values were firm to start the week. On the December KC, support is at the $4.14 low scored this week with resistance the 20-day at $4.28, which we are testing this morning. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.