DTN Midday Grain Comments 12/02 11:32

DTN Midday Grain Comments 12/02 11:32 Grain Trade Trending Lightly at Midday Trade is lower across the board at midday with outside market headwinds. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are mixed with the Dow down 35 points. The interest rate products are higher. The dollar index is 45 points higher. Energies are lower with crude down $1.00. Livestock trade is mixed with cattle lower, and hogs stronger. Precious metals are mixed with gold flat. CORN Corn trade is 2 to 4 cents lower at midday with selling picking up during the day session. Trade remains stalled at the $3.72 level, where we find the 20-day moving average before turning lower this morning. A close above here should spark some chart buying and short covering, but failing to hold it could bring out renewed selling. Basis is expected to be steady in the near term, with some localized pressure from farmer selling. The weekly ethanol production report showed production 5.16% lower, stocks were 1.89% higher, and gasoline demand was 4% higher. Ethanol futures are lower post report. On the March chart, first support is at the 10-day at $3.70 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 narrowly mixed at midday with trade trying to find commercial support despite the negative commodity enviroment. Meal is flat to $1 higher, and oil is 20 to 30 points higher. 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 but there forecasts have gone a little drier in recent runs. The USDA announced 124,000 metric tons of soybeans sold to unknown. So On the January chart, support is now the 50-day moving average at $8.81, with the 10-day at $8.70 below that. The next level of resistance will be $9.00, then the 200-day at $9.32. WHEAT Wheat trade is flat to 3 cents lower across the three contracts at midday with the stronger dollar and weak row crop trade adding pressure this morning. Commercial selling has picked up in the Chicago contract with the Chicago-Kansas City spread shrinking to 3 cents from 25-30 cents recently. World weather conditions should be stable this week. Basis has been sideways in recent days with the US export competitiveness still struggling. The recent winter storms will slow down this week in the US with a drier pattern emerging into the middle of the month. On the March Kansas City chart support is at the new contract low printed this morning and today at $4.63 3/4 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.