DTN Midday Grain Comments 12/17 11:40

DTN Midday Grain Comments 12/17 11:40 All Grains Lower at Midday Trade is lower with corn making new contract lows. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow down 165 points. The interest rate products are lower. The dollar index is 130 points higher. Energies are mixed with crude up $0.70. Livestock trade is lower. Precious metals are lower with gold down $25. CORN Corn trade is 6 cents lower at midday with trade making new contract lows with broad commodity weakness and disappointing export sales helping to drag the market lower. Ethanol margins are continuing to see pressure with ethanol down 1-2 cents this morning. Basis has remained mostly sideways this week. The Argentine currency was allowed to float overnight which resulted in a sharp drop, improving their competitiveness on the world market. Export sales were disappointing at 579,400 metric tons. On the March chart we have fallen through the 20-day at $3.76 which is now resistance. Support is at the $3.62 1/2 contract low. SOYBEANS Soybean trade is 4 to 7 cents lower with trade retesting yesterday's lows this morning. The January contract has moved to a slight inverse to the March on good commercial buying with the USDA announcing 424,000 metric tons sold to China on the daily reporting. Meal is $1 to $2 lower and oil is 50 to 60 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 although the recent forecasts have walked moisture back a bit, while the wet areas remain in the southern growing areas with some rust concerns. Demand concerns remain around the market with the effect of the interest rate hike on commodities uncertain, even with the initial reaction muted. The Argentina currency issues will be watched closely for a bigger export pace. Export sales were disappointing at 887,800 metric tons of soybeans, 108,600 metric tons of meal, and 10,200 of oil. Support is 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 8 to 11 cents lower across the three exchanges at midday with trade seeing selling pressure again after the poor finish yesterday. Chicago has been gaining relative to the Kansas City trade again in spread action, although that action has flattened this morning. The dollar has traded both sides after the 0.25 basis point interest rate hike with trade moving solidly higher this morning. No major northern hemisphere weather issues are expected in the near term. U.S. demand concerns will continue to persist with ample supplies around the world with further Southern Hemisphere harvest starting soon. The weekly export sales were in line with expectations at 320,200 metric tons. On the March Kansas City chart support is recent lows at $4.64 after falling through the 20-day moving average at $4.76. 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.