DTN Midday Grain Comments 12/26 11:20

DTN Midday Grain Comments 12/26 11:20 Grains Mixed at Midday Soybeans are the midday leader, with corn and wheat mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower at midday with the Dow futures down 5 points. The interest rate products are mostly higher. The dollar index is 15 lower. Energies are higher with crude up 1.20. Livestock trade is higher. Precious metals are firmer with gold 8.00 higher. CORN Corn trade is narrowly mixed with quiet trade so far with a 1 3/4 cent range. The 20-day, at $3.51, is always a major moving average the trade watches, which we closed above the past two sessions giving a positive chart signal, but limited follow-through buying is seen. The bull market argument remains hampered by the large domestic and global supplies. Ethanol margins remain compressed but futures seem to be trying to trend higher. Corn basis and carry are expected to remain steady this week. Chinese domestic corn values remain firm. The USDA announced 134,138 metric tons of corn sold to Mexico. The weekly export inspections were a bit softer at 609,281 metric tons. On the March chart support is the 20-day at $3.51, with the 10-day at $3.48 below that then the 50-day moving average at 3.56 is first resistance. SOYBEANS Soybean trade is 8 to 10 cents higher at midday with stronger Chinese values and mixed South American weather to start the week. Meal is $2 to $3 higher and bean oil is 45 to 55 points higher. South American weather has Southern/Central Brazil wetter with scattered rains elsewhere. Basis and carry are expected to remain sideways this week. The daily wire will be watched closely for continued sales with more Chinese activity in recent days but nothing to start the week. The weekly export inspections were a bit softer at 1.238 million metric tons, but still a good number. On the January chart support is the recent low at $9.46 1/2 scored Friday. Resistance is at the $9.62 10-day then the 200-day at $9.74. Even with this light bounce January beans remain 55 cents below the four-month high printed three weeks ago. WHEAT Wheat trade is mixed at midday with spring wheat leading with spread trade hurting winter wheat futures even with the cold snap. The plains continue to be mostly dry and cold in the short term. The dollar has gravitated towards the lower end of the recent range with trade staying around 93 on the index. The weekly export inspections were ok at 493,550 On the March Kansas City contract, chart support is the $4.10 1/2 fresh contract low scored on last week, with the 10-day at $4.17 serving as first support, with the 20-day at $4.23 which we closed just below on Friday, with Chicago moving through its 20-day at $4.25. If we can consolidate here, the 50-day at $4.35 is the next round up. 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.