DTN Midday Grain Comments 11/08 11:47

DTN Midday Grain Comments 11/08 11:47 Grains Mixed at Midday Mixed quiet action at midday day with position squaring ahead of the Thursday WASDE release. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is mixed this morning with the Dow futures down 12 points. The interest rate products are mixed. The dollar index is 10 higher. Energies are mixed with crude down 0.20. Livestock trade is lower led by cattle. Precious metals are firmer with gold down 11. CORN Corn trade is flat at midday with trade continuing to work sideways ahead of the report. The weekly ethanol report showed production 1,000 barrels higher, and stocks 129,000 barrels lower with some imports this week. Ethanol futures are edging lower at midday. No major production changes are expected on the USDA World Agricultural Supply and Demand Estimates (WASDE) on Thursday. The average trade guess is for the 2017-18 ending stocks to be at 2.365 with a range of 2.286 to 2.438 billion bushels. Basis has remained mostly steady to slightly firmer with the weak board. Weather should allow for harvest progress to continue at a good clip. 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 6-week high. SOYBEANS Soybean trade is narrowly mixed at midday with January trade continuing to hold just below the $10.00 area ahead of the report. Meal is $.50 to $1.50 higher and bean oil is 25 to 35 points higher. The market will look for fresh meaningful news on the WASDE. The average trade guess is for a 10 million bushels drop in the carryover to 420 million bushels; the range of estimates is 375-460 million. It is still early to get much direction from South American weather with planting expected to be near normal as we move through November. Domestic basis has started to firm at processors with harvest wrapping up and beans in storage looking for better prices. The daily export wire has remained quiet in recent days. On the January chart, the 200-day at $9.82 is support with trade just above the 10-day and 20-day at $9.90-92, with $10 the next level of resistance which we are just below. WHEAT Wheat trade is mixed with spring wheat leading while winter wheat tests the lower end of the range again. The dollar continues to hold just below 95 on the index with rallies fading at that point. Planting should be wrapping up in the US with mixed weather coming forward and slow emergence from chilly temps. European wheat has showed better strength in recent days but is starting to migrate more sideways. The Middle East and Mediterranean area will be watched for export interest in the near term. The USDA WASDE report is expected to have the wheat carryover at 957 million bushels; the range of estimates is 940-980 million. On the December Kansas City support is at the $4.14 low scored last week with resistance the 20-day at $4.27 which we set back below overnight. 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.