DTN Midday Grain Comments 12/02 11:14

DTN Midday Grain Comments 12/02 11:14 Grains Flat to Higher at Midday Grain trade is flat to higher at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 2 points and the Nasdaq up 20. The interest rate products are lower. The dollar index is 30 lower. Energies are mixed with crude up $0.20. Livestock trade is mostly lower. Precious metals are mixed with gold up $6.60. CORN Corn trade is 1 to 3 cents higher at midday with light buying surfacing overnight as we head toward the weekend with some profit-taking likely vs. fresh shorts established on the break. Ethanol margins remain strong with producer margins getting a boost from the lower corn, flat ethanol futures and firmer unleaded values this week, as well as improved export opportunities. Corn basis should have a firm tone with the break in futures slowing farmer selling, and the winter storm potentially disrupting trade next week. On the March chart resistance is at the $3.52 level where we find the 10-, 20-, 50- and 100-day moving averages, with support is now at the lower Bollinger Band at $3.42. SOYBEANS Soybean trade is 1 to 3 cents higher at midday with trade seeing a less active day compared to earlier in the week. Meal is $2 to $3 higher and oil is down 25 to 35 points lower. South American weather will gain importance as we move into December with limited concerns in the near term with southeast Brazil in good shape. Basis should remain steady in the near term with farmer selling slowing with the rally fading and strong nearby crusher demand. The export wire was quiet again Friday with forward South American exports coming into focus. On the January chart, trade has edged back above the 10-day at 10.31 Friday morning with the 20-day at 10.10 support below that. Longer-term resistance is the $10.65 high earlier in the week. WHEAT Wheat trade is flat to 5 cents higher at midday with the spreads favoring winter wheat after the shift toward the higher-protein Minneapolis wheat for the bulk of the week. Protein will likely remain the biggest near-term driver with plenty of lower-protein stocks that need to be blended off. Australian harvest should continue to make good progress in the near term with good yields coming in, extending the supply overhang. Cooler weather should push the crop toward dormancy with the Western Belt remaining a bit more open on weather with most moisture concentrated in Texas. The dollar is softer but remains about 100 on the index, continuing to limit competitiveness. On the KC March chart, trade fell below the $$4.25 area where the 10- and 20-day moving averages were clustered, as they become resistance again, and support will be the recent lows at $4.01. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.