DTN Midday Grain Comments 12/27 11:50

DTN Midday Grain Comments 12/27 11:50 Corn, Wheat Higher at Midday; Soybeans Lower Wheat leads at midday. Corn is firmer, and soybeans are struggling. 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 higher. The dollar index is 15 lower. Energies are higher with crude up 1.20. Livestock trade is mostly higher. Precious metals are firmer with gold 2.00 higher. CORN Corn trade is flat to 1 cent higher at midday in quiet trade with a 2 1/2-cent range so far. Ethanol margins remain compressed, but futures seem to be trying to trend higher with the weekly report delayed until Thursday, and futures off slightly this morning. Corn basis and carry are expected to remain steady this week. Chinese domestic corn values remain firm. 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 1 to 4 cents lower at midday with trade fading after the strong start to the week on Tuesday, with trade remaining above recent lows. Meal is $2 to $3 lower, and bean oil is flat to 10 points lower. South American weather has southern/central Brazil wetter with scattered rains elsewhere. Parts of Argentina are also looking wetter this morning. Basis and carry are expected to remain sideways this week with some processor improvement. The daily wire will be watched closely for continued sales. More Chinese activity has been seen in recent days with another 110,000 metric tons of soybeans announced this morning. On the January chart, support is the recent low at $9.46 1/2 scored Friday. Resistance is at the $9.60 10-day, which we have edged above overnight before setting back, then the 200-day at $9.74. WHEAT Wheat trade is 2 to 6 cents higher at midday with trade finding buying with record cold today on the Plains, with more potentially coming. The Plains continue to be mostly dry and cold in the short term with some snow cover in the northern winter wheat growing areas, mostly north of I-70. Forecasts remained mixed as far as the extent of the cold to the south. The dollar has gravitated toward the lower end of the recent range with trade staying below 93 on the index. On the March KC 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 are back just above this morning. 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.