DTN Midday Grain Comments 12/08 11:39

DTN Midday Grain Comments 12/08 11:39 Soybeans Leading Grains Lower at Midday Trade is mixed at midday with outside market pressure still a concern. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow down 175 points. The interest rate products are mixed. The dollar index is 11 points lower. Energies are mixed with crude up $0.20. Livestock trade is mixed. Precious metals are mixed with gold down $2. CORN Corn trade is a penny better at midday with trade showing some strength overnight with light short profit taking. Basis should remain sideways to firm with farmer selling slowing with the break. Ethanol margins are under pressure with the energy complex around seven-year lows but ethanol futures fairly flat this morning. The monthly WASDE report tomorrow is expected to leave things mostly unchanged from November with no yield or production changes, only possible minor demand changes. So the market will watch the report, but this is viewed as the least important monthly report of the year. Maybe that is when we will get some excitement or surprise. At this juncture the daily range is 3 cents with the market quiet following the downside correction yesterday. March corn sitting here around $3.74 is a dime above the contact low printed last month and 8 cents below the four-week high printed yesterday. We are 35 cents below the 4-month high and nearly 90 cents below the yearly high. So if the market can find a reason to rally there are bigger upside retracements to talk about, but for now big supplies with no major production issue should keep the market narrow and sideways this week and month. On the March chart futures are just above the 10-day at $3.73 with first support now at the 20-day at $3.71, and second at the $3.64 contract low. Resistance is at the $3.82 four-week high reached Monday, then the 50-day at $3.84. SOYBEANS Soybean trade is 6 to 9 cents lower at midday with early strength giving way to renewed selling at midday with the market focusing on enhanced export potential from South America and soft outside markets. Meal is $1 to $2 lower, and oil is 20 to 30 points lower. Soy oil has been complex leader with concerns about Asian palm oil production, but the slide in crude oil has undermined that trade. South American weather continues to leave some holes but major issues remain limited, although there might be greater potential for rust in some of the wetter areas of Brazil. Argentina looks to be promoting more aggressive export policies. The WASDE report tomorrow is expected to be in line with last month with any material adjustment likely coming to South American production, but there is limited reason for much change. On the January chart support is at the 20-day moving average at $8.71. Resistance is at the 50-day at $8.83 then the seven-week high printed yesterday at $9.09 3/4. WHEAT Wheat trade is 1 to 3 cents lower across the three contracts at midday with trade following the lead of the row crops. Spread trade favored the Chicago contract to start the week with concerns about the Russia and Turkey conflict. The dollar has slipped a bit this morning which will support trade. Basis has been sideways in recent days with the US export competitiveness still struggling. US wheat should be drier in the near term with warm temps, with Russia seeing similar weather. The WASDE report is not expected to show major changes tomorrow. On the March Kansas City chart support trade is between the 10-day moving average at $4.72, and the 20-day moving average at $4.74. 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.