DTN Midday Grain Comments 12/29 11:22

DTN Midday Grain Comments 12/29 11:22 Grain Trade Mixed at Midday Trade is mixed in quiet action at midday. By David Fiala DTN Contributing Analyst General Comments U.S. stock markets are higher with the Dow up 180 points. Interest rate products are higher. The dollar index is 45 points higher. Energies are higher with crude $.90 higher. Livestock trade is mostly lower. Precious metals are higher with gold up $1. CORN Corn futures are 1 to 2 cents lower at midday, which is 2 to 3 cents above our early morning and fresh contract lows. Follow-through selling was noted for our weakness and now there is talk of a turn-a-round Tuesday at midday. Market shorts should have some interest in taking profits ahead of the year and quarter end on Thursday. The ongoing winter storm will likely disrupt corn movement this week and keep basis steady to firmer in most areas, along with the lower board limiting farmer selling interest. Ethanol margins started the week under pressure but the stretch of colder weather may boost the energy markets with ethanol steady and unleaded up 3 cents this morning. On the March chart we have the 20-day at $3.72 as key resistance with the $3.56 area of the December contract low next level of support below the fresh $3.57 contract low printed this morning. SOYBEANS Soybean futures are 2 to 4 cents higher at midday with the early dime-higher trade being faded at midday. Meal is flat to $1 higher and oil is 20 to 30 points higher. The drier areas of Brazil are expected to remain dry until late week, with the excessively wet areas drying out in that time frame. Improved rains are expected from there. Trade will continue to follow updated forecasts closely as we move through the more thinly traded holiday sessions this week. The exports have been strong but ample supplies will continue to limit rallies along with additional competition from South America as their weak currencies assist them. January soybean chart support is at the recent lows at $8.55, with the 20-day at 8.81 resistance. WHEAT Wheat futures are mixed at midday with Chicago leading as the winter storm brings floods to winter wheat growing areas. KC wheat growing areas generally received moisture and snow cover as well, while Black Sea area wheat sees colder temps coming with mixed snow cover. The dollar looks to remain in the lower end of the range in the near term, but the strength today discourages short-covering. On the March KC chart support is at the $4.63 3/4 contract low printed at the beginning of the month, with nearby resistance the lowest major moving average at $4.77 the 20-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.