DTN Midday Grain Comments 12/10 11:30

DTN Midday Grain Comments 12/10 11:30 Grain Trade Generally Higher at Midday Trade is firmer across the board at midday led by wheat; chart momentum is positive at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow up 85 points. The interest rate products are mostly higher. The dollar index is 22 points higher. Energies are mixed with crude down $.20. Livestock trade is mixed with cattle turning higher. Precious metals are mixed with gold down $5. CORN Corn trade is 5 cents higher with good commercial support surfacing after better than expected export numbers. On the WASDE report, the corn carryover was raised to 1.785 billion from 1.76 due to a 25-million-bushel increase in the ethanol usage number but a 50-mb reduction in the export number. The global carryover was unchanged from last month at 211.9 million metric tons. So the report was slightly negative, but in near contract lows, so short profit taking interest has been indicated here. Ethanol margins remain not so great with steady ethanol futures at midday and a weak energy complex. The weekly export sales were strong at 1.1 million metric tons. On the March chart futures we remain above the 10-day 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 $3.83. SOYBEANS Soybean trade is flat to 2 cents higher in quiet trade at midday following the lead of the corn and wheat. Meal is $1 to $2 lower and oil is 35 to 45 points higher. The USDA monthly report provided no change to the domestic carryover, it remained at 465 million bushels and the global carryover was at 82.6 million tons versus 82.9 a month ago. The soyoil has fallen back towards support levels after the recent strength was undermined by sliding crude oil values, but has found support this morning. 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. The weekly export sales were good at 1.45 million metric tons of soybeans, 228,700 metric tons, and 13,800 of oil. The USDA also announced 120,000 metric ton sale to unknown. On the January chart support is at the 20-day moving average at $8.73. Resistance is at the 50-day at $8.82 then the seven-week high printed yesterday at $9.09 3/4. WHEAT Wheat trade is 4 to 9 cents higher at midday with short covering returning after the weaker overnight trade. The dollar has bounced this morning, but trade has shaken it off so far. The USDA report had the domestic carryover unchanged at 911 million bushels, with the global carryover up to 229.9 million tons versus 227.3 last month. The huge supply side situation is bearish for corn and wheat due to the increased feed completion with wheat. Weekly sales were soft at 225,100 metric tons. Kansas City March wheat is less than 20 cents above the contract low printed last week and $1.50 below the late June high, so there is room to bounce, but the fundamentals point toward good selling interest on a further bounce. On the March Kansas City chart support trade is the 10 and 20-day moving averages in the $4.72-4.74 area. Resistance is at the $4.93 50-day moving average, which we are just below at midday. 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.