DTN Midday Grain Comments 12/15 11:16

DTN Midday Grain Comments 12/15 11:16 Corn, Beans Lower at Midday, Wheat Mixed Trade is mostly lower at midday in quiet trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow up 200 points. The interest rate products are higher. The dollar index is 54 points higher. Energies are mixed with crude up $0.75. Livestock trade is mixed with cattle higher. Precious metals are lower with gold down $4. CORN Corn trade is 2 to 3 cents lower with weaker soybeans and a stronger dollar weighing on trade. Light commercial buying is adding support this morning. Basis should remain steady with poor weather conditions slowing movement to start the week. Ethanol margins continue to be pressed by the cheap unleaded values, but the energy complex has shown more signs of life to start the week, although unleaded values have been slow to respond. On the March chart futures are back above the 10-day at $3.76 with secondary support at the 20-day at $3.73. Resistance is at the $3.82 four-week high and 50-day moving average. Expect sizeable buy stops above resistance if strength can return this week or next during thinner holiday trade. SOYBEANS Soybean trade is 6 to 9 cents lower with the markets looking towards South American weather and the Fed decision on interest rates for further direction. Meal is $1 to $2 lower, and oil is 60 to 70 points lower turning the bean oil charts negative. Much of the northern Brazilian growing areas remain short on rain in the near term with improved rains expected 6 to 10 days out, while the wet areas remain in the southern growing areas with some rust concerns. Some local groups are starting to walk back production estimates slightly. USDA announced 120,000 metric tons of soybeans sold to China. On the January chart support is at $8.66 1/2, which was the low this morning then the contract low down around $8.44. Resistance is at the 20-day at $8.75 then the 50-day at $8.82. WHEAT Wheat trade is 2 cent lower to 4 cents higher across the three contracts at midday with trade shaking off early weakness to turn positive on short covering at midday. The dollar is slightly firmer this morning, but the overall reaction to the Fed move will be the big determining factor for the week. The Black Sea is having warmer weather this week but not enough to bring the crop out of dormancy, while the U.S. wheat growing areas have caught good rains with above normal temperatures. Overall former Soviet Union conditions are lagging last year though. U.S. 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 is around the 10- and 20-day moving averages in the $4.76-79 area. Resistance is at the $4.92 50-day moving average. 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.