DTN Midday Grain Comments 12/16 11:14

DTN Midday Grain Comments 12/16 11:14 All Grains Lower at Midday Trade is lower at midday with some downside momentum. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow up 15 points. The interest rate products are higher. The dollar index is 8 points lower. Energies are lower with crude down $1.60. Livestock trade is lower. Precious metals are higher with gold up $13. CORN Corn trade is 5 to 6 cents lower at midday with trade moving lower during the day session with pressure from overall commodity weakness led by crude oil. Basis should remain steady with poor weather conditions slowing movement to start the week and may firm with the board weakness. Ethanol margins continue to be pressed by the cheap unleaded values, with the weekly ethanol report showing production 0.70% higher, stocks 2.49% higher, and gasoline demand 2.12% lower. That added to the negative focus this morning. Ethanol futures were almost 3 cents lower at midday. On the March chart we have fallen through the 20-day at $3.76 which is now resistance. Support is at the $3.65 contract low. SOYBEANS Soybean trade is 8 to 9 cents lower at midday with significant selling pressure returning at midday ahead of the Fed decision, Meal is $3 to $4 lower, and oil is 60 to 70 points lower. 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. There has been more heat in Brazil lately as well, although it has not been excessive. Some local groups are starting to walk back production estimates slightly while the government groups remain optimistic. NOPA crush was disappointing at 156.3 million bushels. On the January chart support is at $8.56, 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 5 to 10 cents lower at midday with selling returning at midday after the early week strength. The dollar is slightly weaker this morning, but the overall reaction to the Fed move will be the big determining factor for the week with the dollar still fairly near the upper end of the range. No major Northern Hemisphere weather issues are expected in the near term. US 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 $4.77-83 area. Resistance is at the $4.92 50-day moving average which we are tested overnight before falling back. 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.