DTN Midday Grain Comments 12/11 11:22

DTN Midday Grain Comments 12/11 11:22 All Grains Lower at Midday Trade is lower across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow down 230 points. The interest rate products are lower. The dollar index is 33 points lower. Energies are lower with crude down $0.90. Livestock trade is mixed with cattle turning higher. Precious metals are mixed with gold down $5. CORN Corn trade is 2 to 4 cents lower due to weak outside markets and renewed selling interest due to our bear chart trend and bear fundamental trend. The USDA change in the domestic carryover was not much this week, but it was larger. The growing wheat global carryover illustrates an item that will restrict corn exports due to global feed competition. Basis has remained fairly sideways in the country this week. Ethanol margins continue to be pressed by continued weakness in the energy complex. On the March chart futures we remain above the 10-day with first support now at the 20-day at $3.72, 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 6 to 9 cents lower at midday with trade giving back the early gains with further outside market weakness. Meal is flat to $1 lower, and oil is 35 to 45 points lower. The bean oil had faded today with the renewed weakness in the crude oil. 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 early week system forecasted will be key for further development in Brazil On the January chart support is at the 20-day moving average at $8.74 which we have edged below at midday. 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 8 cents lower in quiet trade overnight following the lead of the row crops despite the weaker dollar. The Black Sea is having warmer weather this week with limited winter kill threats there and in the United States. Demand concerns will continue to persist with ample supplies around the world with further Southern Hemisphere harvest starting soon. 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. 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.