DTN Midday Grain Comments 12/29 11:08

DTN Midday Grain Comments 12/29 11:08 Grains Mixed at Midday Soybeans are the midday leader, with corn and wheat softer. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower at midday with the Dow futures down 20 points. The interest rate products are higher. The dollar index is 37 lower. Energies are mostly higher with crude down 0.30. Livestock trade is mostly lower. Precious metals are mixed with gold 8.20 higher. CORN Corn trade is 1 to 2 cents lower in quiet trade at midday with the March continuing to hold just above $3.50. Ethanol futures are flat with cold weather likely slowing ethanol production near term with the spike in natural gas narrowing producer margins. Corn basis and carry have been mostly steady this week. Chinese domestic corn values remain firm. The weekly export sales were strong at 1.25 million metric tons. On the March chart support is the 20-day at $3.51 which we are testing at midday, with the 10-day at $3.50 below that then the 50-day moving average at 3.55 is first resistance. Trade has continued to migrate back to the 20-day moving average this week. SOYBEANS Soybean trade is 2 to 4 cents higher at midday with trade finding light buying at the lower end of the range with March becoming the front month as January goes into delivery. Meal is flat to $1 lower and bean oil is 45 to 55 points higher. South American weather looks to remain good for Brazil, and mixed for Argentina. Basis and carry are expected to remain sideways this week with some processor improvement. The daily wire has been quiet to end the week. Weekly sales at 974,700 metric tons of beans, 288,300 of meal, and 44,200 of oil. On the March, chart support is the recent low at $9.54 3/4 scored this morning. Resistance is at the $9.65 10-day then the 200-day at $9.80. WHEAT Wheat trade is flat to 3 cents lower in quiet trade at midday with trading on the winter wheat continuing to consolidate above resistance ahead of the cold weather this weekend. The plains continue to be mostly dry and cold in the short term with some snow cover melting ahead of the cold snap north of I-70. Forecasts remained mixed as far as the extent of the cold to the south through the weekend but record lows appear possible. The dollar has gravitated towards the lower end of the recent range with trade moving just below 92 on the index. Weekly export sales were ok at 478,400 metric tons. 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 $4.22 becoming support if trade can hold up today. If we can consolidate here, the 50-day at $4.34 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.