DTN Midday Grain Comments 12/18 11:23

DTN Midday Grain Comments 12/18 11:23 All Grains Higher at Midday Trade is higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow down 195 points. The interest rate products are lower. The dollar index is 50 points lower. Energies are higher with crude up $.35. Livestock trade is sharply higher. Precious metals are higher with gold up $15. CORN Corn trade is 4 to 5 cents higher at midday with trade finding some additional support from the improved commodity environment today and the chart reversal yesterday. Ethanol margins remain under pressure although Holiday travel should aid consumption over the next two weeks. Ethanol futures are slightly higher at midday with corn up a nickel. Basis has remained mostly sideways this week. The Argentine currency was allowed to float yesterday which resulted in a sharp drop, improving their competitiveness on the world market with more corn expected to flow from their borders, especially if they can tame inflation. On the March chart we are back above the 10-day and 20-day moving average at $3.74-75, with resistance the recent highs around $3.82. Reaching a new contract low yesterday then finishing above the 20-day and near the daily high gives the appearance of a key chart reversal. This is creating buying today, and should make for an interesting shortened week of trade next week. SOYBEANS Soybean trade is 11 to 14 cents higher at midday with trade finding renewed buying support after the weather forecast moved drier for parts of Brazil. Meal is $4 to $5 higher and oil is 45 to 55 points higher. Much of the northern Brazilian growing areas remain short on rain in the near term with expected rains in central Brazil being scaled back, while the wet areas remain in the southern growing areas with some rust concerns. The USDA also announced further export sales to unknown of 220,036 metric tons. Support is now the 10- and 20-day moving average at $8.75-77 area, with $9.00 resistance. WHEAT Wheat trade is 8 to 15 cents higher across the three contracts at midday with trade following the lead of the row crops and the overall commodity space. The dollar has turned lower, which has added support, along with further talk of planting reductions in the Black Sea area. No major northern hemisphere weather issues are expected in the near term, but warm temps could lead to more winter kill vulnerability later. 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, we have edged above the 50-day moving average at $4.92 this morning. 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.