DTN Midday Grain Comments 12/21 11:02

DTN Midday Grain Comments 12/21 11:02 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 higher with the Dow up 30 points. The interest rate products are mostly lower The dollar index is 25 points lower. Energies are mostly lower with crude down $0.40. Livestock trade is higher with cattle mostly limit higher. Precious metals are higher with gold up $13. CORN Corn trade is 3 to 5 lower at midday with early strength giving way to selling during the day session. Ethanol margins remain under pressure with the continued weak energy trade, although usage should be up for Holiday travel this week. Ethanol futures are fractionally lower at midday/ The weekly export inspections showed improvement at 718,888 metric tons. The thinner holiday trade could trigger some surprises this week as we will only trade until noon on Thursday. On the March chart we have faded below the 20-day moving average at $3.74, with further support at $3.63 and resistance at the $3.79 1/2 50-day. SOYBEANS Soybean trade is 3 to 5 cents lower at midday with trade edging lower after a better forecast for Brazil in the near term. Meal is flat to $1 higher and oil is 20 to 30 points lower. The forecast is a bit wetter for the dry portions of Brazil as compared to Friday, and some excessive wetness remains. Trade will continue to follow updated forecasts closely. The weekly export inspections showed improvement at 1.463 million metric tons. On the chart, January chart support is now the 50-day at 880 then the 20-day at 879. Resistance is the $9.01 100-day moving average then the $9.09 3/4 early December high. WHEAT Wheat trade is 2 to 8 cents lower across the three contracts at midday following the lead of the row crops. The dollar has remained in the lower end of the past months' range which should help add support. The bear argument was that any strength in wheat is simple profit taking by shorts as trade remains pretty heavily short. Big world and domestic supplies continue to limit bullish ideas. No major Northern Hemisphere weather issues are expected in the near term, but warm temps could lead to more winter kill vulnerability later for the U.S. and Russia. The weekly export inspections were better at 475,375 metric tons. The March Kansas City chart support is at the $4.78 20-day which we have edged below at midday with resistance at the $4.89 50-day. 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.