DTN Midday Grain Comments 12/01 11:17

DTN Midday Grain Comments 12/01 11:17 Soybeans Leading Grains Higher at Midday Trade has turned positive at midday with soybeans leading. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow up 110 points. The interest rate products are lower. The dollar index is 20 points lower. Energies are mixed with crude down $0.20. Livestock trade is mixed with cattle lower, and hogs stronger. Precious metals are mixed with gold flat. CORN Corn trade is 2 higher at midday; the overnight up to midday trading range has been fractionally lower to nearly 4 higher taking us to new 3-week highs. Trade pushed into the key resistance level at $3.73, the 20-day moving average, overnight and has maintained above this level. A close above here should spark some chart buying and short covering, but if we see a turn-a-round Tuesday and a lower close the positive chart story would fade. Basis is expected to be steady in the near term, with some localized pressure from farmer selling. Ethanol margins are fairly sideways to better with unleaded up 6 and ethanol up 3 cents. On the March chart, first support is at the 10-day at $3.69 3/4 then the recent contract low at $3.65. The 50-day at $3.86 is the next chart level to note above the 20-day. SOYBEANS Soybean trade is 6 to 9 cents higher at midday with commercial buying leading trade higher yet again. Meal is $5 to $6 higher, and oil is flat to 10 points lower giving back the early gains there. Southeast Asia veg oil production will need to be watched as it has been behind the recent strength in bean oil. South American weather looks better for Brazil than Argentina in the near term with no major issues so far, so the strength did not appear to be due to weather. So On the January chart, support is now the 20-day moving average at $8.66 with resistance at $8.81, the 50-day then $9.19-$9.24 which is the area of the 100-day and three-month high. Futures did move above the 50-day overnight, and if they can hold that strength today, additional buying may come in. WHEAT Wheat trade is flat to 4 cents higher across the three contracts with the early strength fading despite the weaker dollar. Commercial selling has picked up in the Chicago contract with the Chicago-Kansas City spread shrinking 5 cents from 25-30 cents recently. World weather conditions should be stable this week, with some improvement for China expected. Condition reports from the Ukraine are significantly lower than last year. The weekly crop progress report showed conditions 2% better at 55% good to excellent. The recent winter storms will slow down this week in the U.S. On the March Kansas City chart support is at the new contract low printed Monday and today at $4.65 1/2 with resistance at the $4.74 10-day moving average which was challenged Monday. The 20-day at $4.83 is the next level of resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.