DTN Midday Grain Comments 12/07 11:05

DTN Midday Grain Comments 12/07 11:05 Row Crops Lower at Midday Row crops are lower at midday, wheat is mixed. By David Fiala DTN Contributing Analyst General Comments U.S. stock markets are lower with the Dow down 180 points. Interest rate products are lower. The dollar index is 25 points higher. Energies are lower with crude down $2.00. Livestock trade is lower. Precious metals are lower with gold down $8. CORN Corn futures are 5 to 7 cents lower at midday with pressure from outside markets spilling over; trade is also a bit overbought. Basis is expected to remain sideways in the near term with the rally inducing some movement of corn. Ethanol margins are under pressure with the energy complex sliding after OPEC raised its production quotas, although actual output isn't expected to change much, with ethanol futures 2 cents lower at midday. The weekly export inspections showed some improvement at 491,879 metric tons, and USDA announced 115,000 metric tons sold to Mexico. The El Nino story seems to be growing and may bring in some speculative support in the coming months. On the March chart we are remain above the 10-day at $3.73 and the 20-day at $3.71, with the next level of resistance at the 100-day moving average at $3.86. SOYBEANS Soybean futures are 8 to 10 cents lower at midday with pressure from outside markets as well as overbought trade. Meal is $1 to $2 lower, and oil is 50 to 60 points lower. Soy oil has been the complex leader with concerns about Asian palm oil production, but it has been pressured by the sell-off in crude this morning. South American weather continues to leave some holes, but major issues remain limited. However, there might be greater potential for rust in some of the wetter areas of Brazil. The weekly export inspections were good at 1.720 million metric tons. On the January chart, support is now the 10-day moving average at $8.84, with the 20-day at $8.72 below that. The next level is the 100-day at $9.17. WHEAT Wheat futures are mixed at midday with Chicago trade finding some light commercial support early on. 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. U.S. wheat should be drier in the near term with warm temps. The wheat export inspections were 225,034 which remains soft, with conditions steady to better. On the March KC chart support trade has punched through the 10-day moving average at $4.72, and the 20-day at $4.75, 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.