DTN Midday Grain Comments 12/31 11:02

DTN Midday Grain Comments 12/31 11:02 Grain Trade Quietly Mixed at Midday Trade is lower in quiet trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow down 125 points. The interest rate products are lower. The dollar index is 40 points higher. Energies are higher with crude $0.30 higher. Livestock trade is mixed. Precious metals are mixed with gold up $1. CORN Corn trade is flat to 2 cents lower in quiet trade at midday with soybeans and outside markets limiting market enthusiasm. Basis has slumped in some areas with weather disruptions and has firmed in some others. Ethanol margins have improved slightly this morning with unleaded and ethanol futures fractionally higher. The weekly export sales were at the upper end of the range with 705,200 metric tons. On the March chart we have the 20-day at $3.71 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 Tuesday. SOYBEANS Soybean trade is 3 to 6 cents lower with early gains fading this morning despite some commercial support. Meal is $1 to $2 lower, while oil is 30 to 40 points lower. The drier areas of Brazil are expected see an expansion in rains over the next few days, with the longer term outlook mixed as the wet areas shift drier. The export market has been quieter this week with disruptions in movement from the winter storm but 119,000 metric tons were announced as sold to China. The weekly export sales were disappointing at 478,800 metric tons, 78,900 of meal, and -5,700 of oil. March soybean chart support is at the recent lows at $8.61, with the 20-day at 8.80 resistance. WHEAT Wheat trade is flat to 3 cents higher at midday with finding some light short covering going into the end of the year. The stronger dollar will likely limit the light short covering towards the end of the session. Flooding concerns are plaguing the Chicago wheat growing areas, while Kansas City wheat looks to get a boost from the storm as it goes into dormancy. Ukrainian wheat will be tested by cold temps and a lack of snow cover in the near term, but major concerns are limited at this point. The weekly export sales remained mediocre at 363,500 metric tons. On the March Kansas City 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.