DTN Midday Grain Comments 12/04 11:40

DTN Midday Grain Comments 12/04 11:40 Soybeans Lower at Midday; Corn, Wheat Flat to Higher Trade is mixed to higher at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow up 240 points. The interest rate products are higher. The dollar index is 60 points higher. Energies are lower with crude down $0.80. Livestock trade is lower. Precious metals are higher with gold up $25. CORN Corn trade is 2 to 3 cents higher at midday with trading finding better support during the day session with support from commercial buying. Basis has been steady to slightly weaker this week with the futures rally helping to move some bushels. Ethanol margins are under pressure with the energy complex sliding after OPEC raised their production quotas. The El Nino story seems to be growing and may being in some speculative support in the coming months. On the March chart we are back above the 10-day at $3.72 and the 20-day at $3.71, with the next level of resistance at the 100-day moving average at $3.86. SOYBEANS Soybean trade is 1 to 2 cents lower with two sided trade seen so far today. Commercial interest remains around the market with the USDA announcing 178,000 metric tons of soybeans sold to China, and 249,000 sold to unknown. Meal is $1 to $2 lower, and oil is 20 to 30 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, giving oil a friendly chart picture. South American weather continues to leave some holes but major issues remain limited with an uptick in moisture for Brazil in the near term, and Argentina in the 11-15 day. So On the January chart, support is now the 50-day moving average at $8.81, with the 10-day at $8.78 below that. The next level of resistance will be $9.00, which we tested this morning, then the 100-day at $9.17. WHEAT Wheat trade is flat to 3 cents higher at midday across the three contracts with some light follow-through buying from the strong rally yesterday. Wheat has shaken off the bounce back in the dollar so far this morning. Basis has been sideways in recent days with the U.S. export competitiveness still struggling, although it has improved after the sharp dollar slide yesterday. The recent winter storms will slow down this week in the U.S. with a drier pattern emerging into the middle of the month. On the March Kansas City chart support trade has punched through the 10-day moving average at $4.72, and the 20-day at $4.76, and closing above that level again today will be supportive. 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.