DTN Midday Grain Comments 12/04 11:36

DTN Midday Grain Comments 12/04 11:36 Grains Mixed at Midday Soybeans are solidly higher at midday, with corn and wheat turning lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are sharply higher at midday with the Dow futures up 225 points. The interest rate products are lower. The dollar index is 35 points lower. Energies are lower with crude 0.75 higher. Livestock trade has cattle sharply lower, and hogs mostly higher. Precious metals are lower with gold down $5.70. CORN Corn trade is 2 to 4 cents lower at midday with early strength fading after March was testing the $3.60 area of resistance on the overnight trade. Ethanol margins are seeing some pressure from corn moving into the upper end of the range and weaker energy, with ethanol futures continuing to work lower this morning. March corn is now the front month with carry remaining wide out to May, with basis remaining steady to a little better to start the week. The weekly export inspections were soft at 586,213 metric tons. On the March chart support is the low at $3.49. Resistance is the 50-day moving average at 3.60, which we tested overnight before setting back. SOYBEANS Soybean trade gapped higher overnight with trade touching the recent highs overnight with demand and weather concerns helping to push the market, with trade 7 to 10 cents higher at midday. Meal is $9 to $10 higher and oil is 15 to 25 points lower. South American weather looks like more of the same in the near term, with the extended forecast leaning drier for Argentina. Basis is likely to remain steady with the board strength. The export wire will be watched for further activity with nothing out there today. The weekly export inspections were better at 1.80 million metric tons. On the January chart resistance is the overnight high at $10.08 1/2, which where the higher end resistance was coming into the day, with support the gap at $9.97 3/4, that was left overnight. WHEAT Wheat trade is narrowly mixed at midday with trade testing upside resistance for the winter wheats even as corn support fades. If trade can finish through resistance levels, better follow through buying should start to develop. The plains look pretty warm and dry the next few days, with cooler trend into the end of the week. Australian harvest should resume after drying from the weekend storms, with action passed the halfway point with total harvest estimated at 20.3 million metric tons, down 42% from last year. Weekly export inspections remained showed improvement at 409,563 metric tons. Black Sea values have remained steady to weak in as they continue to control the export market On the March Kansas City support is the $4.23 low scored Tuesday, with the 20-day at $4.38, as resistance, which we are just below at midday. 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 (SK) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.