DTN Midday Grain Comments 12/03 11:24

DTN Midday Grain Comments 12/03 11:24 Grains Higher at Midday Trade is higher across the board at midday with outside market support. By David Fiala DTN Contributing Analyst General Comments U.S. stock markets are mixed with the Dow down 35 points. Interest rate products are higher. The dollar index is 155 points lower. Energies are mixed with crude up $.45. Livestock futures are sharply lower. Precious metals are mixed with gold $1. CORN Corn futures are 3 to 6 cents higher at midday with good buying strength after the dollar reversed following the remarks by the head of the European Central Bank. Ethanol margins will get a boost if the energy rally can be sustained for once, but otherwise margins remain under pressure with growing stocks. Ethanol futures are a penny higher at midday. The weekly export sales were mediocre for the holiday week at 499,400 metric tons. We have hung in there, and a strong finish today would get trade through some of the nearby resistance levels. The El Nino story seems to be growing and may lead to some speculative support in the coming months. On the March chart we are back above the 10-day at $3.70 3/4 and the 20-day at $3.72, and holding these levels would likely encourage some chart buying. SOYBEANS Soybean futures are flat to 2 cents higher with trade finding buying interest and following the lead of corn and wheat. Meal is $1 to $2 lower and oil is 30 to 40 points higher. Asian veg oil production will need to be watched as it has been behind the recent strength in bean oil. Nearby bean oil has moved back through its 200-day moving average at 30.73. South American weather looks fine for Brazil and Argentina, but their forecasts have gone a little drier in recent runs. USDA announced 132,000 metric tons of soybeans sold to China. Weekly export sales were softer at 878,300 metric tons, 77,500 of meal, and 5,300 of oil. On the January chart, support is now at the 50-day moving average of $8.81, with the 10-day at $8.71. The next level of resistance will be $9.00, then the 100-day at $9.17. WHEAT Wheat futures are 14 to 18 cents higher across the three contracts at midday with support from the sharply lower dollar. Commercial buying has showed up in the Chicago trade as well with the spreads remaining stable. Basis has been sideways in recent days with U.S. export competitiveness still struggling. Recent winter storms will slow down this week in the U.S. with a drier pattern emerging into the middle of the month. The weekly export sales were OK at 392,200 metric tons. On the March KC chart support has punched through the 10-day moving average at $4.72, and the 20-day at $4.78; closing above that level would likely induce some short-covering. 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.