DTN Midday Grain Comments 12/05 11:05

DTN Midday Grain Comments 12/05 11:05 Soybeans Higher at Midday Soybeans make new highs this morning, corn and wheat mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the Dow futures up 30 points. The interest rate products are mostly lower. The dollar index is 15 points higher. Energies are mixed with crude 0.07 higher. Livestock trade has cattle mixed and hogs lower. Precious metals are lower with gold down $11.00. CORN Corn trade is narrowly mixed at midday with trade trying to regain footing after failing at new highs yesterday, and trying to follow soybeans higher. Ethanol margins are stable with the ethanol futures remaining at the lower end of the range to the benefits of blenders, although they have edged higher this morning. Carry and basis were generally quiet to start the week. Colder weather coming up should boost livestock consumption. The USDA announced 160,000 metric tons of sorghum sold to China. On the March chart support is the low at $3.49. Resistance is the 50-day moving average at 3.60. SOYBEANS Soybean trade is 10 to 14 cents higher at midday with trade still working to consolidate over $10 on the front months, and with new highs scored for the move. Meal is $5 to $6 higher and oil is narrowly mixed. South American weather looks like more of the same in the near term, with the extended forecast leaning drier for Argentina with planting progress a bit behind normal. Basis is likely to remain steady to weaker with the board strength. The export wire will be watched for further activity with nothing announced to start the week. On the January chart resistance is the new high at $10.15, which where the higher end resistance was coming into the day, with support the gap at $9.96 3/4. WHEAT Wheat trade is mixed with spring wheat flat to 2 higher, and winter wheat 2 to 4 cents lower with range bound trade continuing. Trade has seen light selling after failing to move through resistance yesterday. The plains will turn colder with moisture looking to remain limited. 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. Black Sea values have remained steady to weak with Russia working to push more bushels out. On the March Kansas City, support is the $4.23 low scored Tuesday, with the 20-day at $4.37, as resistance, which we tested but failed to hold. 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.