DTN Midday Grain Comments 12/29 11:25

DTN Midday Grain Comments 12/29 11:25 Grains Trade Mixed at Midday Trade is mixed at midday with wheat showing the most strength. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are slow and lower with the Dow futures down 5. The interest rate products are higher. The dollar index is 55 lower. Energies are mixed with crude narrowly mixed. Livestock is mostly lower. Precious metals are higher with gold up $14. CORN Corn trade is a penny higher at midday in slow trade; the daily range has been a mixed 3 cents. The weekly ethanol report showed production down 8,000 barrels per day, with stocks down 338,000 barrels, which has ethanol futures up a couple of cents at midday which is supporting corn. The weekly export sales report is delayed until tomorrow. There is limited fresh news this morning but most look to the latest South American forecasts to direct trade this afternoon and tomorrow ahead of the long holiday weekend. On the March chart the 20-day moving average at $3.53 3/4 is resistance then the 50-day at $3.55, support is at $3.45 1/2, the 3-week low, then $3.41 3/4, the three month low. SOYBEANS Soybean trade is 2 cents lower at midday, meal is $1 to $2 lower and oil is 20 to 30 lower. There was some overnight strength tied to a more concerting forecast but morning models eased concern. Early Brazilian harvest is showing strong yields but the majority of the crop has a long way to go until maturity, with the next two months the most important growing weather months with the overnight forecasts turning more worrisome with the midday forecast likely providing direction for the afternoon. Argentina is still working on wrapping up planting and has switched to being too wet versus dry two weeks ago. Basis should remain steady in the near term with some pressure from end of year cash movement. On the March chart, support is at the $10.04 200-day then the $9.94 100-day moving average. Resistance is at the $10.23 10-day then the $10.34 20-day. WHEAT Wheat trade is 1 to 4 cents higher at midday with the weaker dollar adding support. There is mixed spillover direction from the row crops. The dollar is backing off the lower end of the range. Weather for the winter wheat areas looks fairly non-eventful for the wheat belt, but some dryness has started to build again with the mild temps in the west. The Southern Hemisphere harvest should continue to move along with good yields adding to the world supply situation with some disruptive rains in Australia. On the Kansas City March chart we are just above the 20-day at $4.10. The next support level is at the $3.99 low. The 10-day at $4.12 1/2 is chart resistance then the 50-day at $4.23. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.