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DTN Midday Grain Comments 12/05 12:04

5 Dec 2016
DTN Midday Grain Comments 12/05 12:04 Corn, Soybeans Higher at Midday Double-digit midday gains in beans and corn has market bulls in control. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 70. The interest rate products are lightly lower. The dollar index is 39 lower. Energies are mixed with crude up $0.25. Livestock trade is mostly higher. Precious metals are lower with gold down $9. CORN Corn trade is a dime higher at midday and near the daily high; we have seen some surprise strength since the day session open due to chart buying, spillover support from beans as well as a few other noted factors. The weekly export inspections were good at 1.15 million tons. Chart momentum is up at midday with futures moving above the $3.54 area where we found the 10-day, 20-day and 50-day moving averages. Trend line resistance is at $3.61, then the $4.64 upper Bollinger Band, then the $3.69 4-month high. Support is at $3.54. The move last week was bearish, but now this surprise move this morning could have short covering a dominant market force this afternoon. SOYBEANS Soybean trade is 17-18 higher at midday, meal is up $8 and bean oil is up 5 points at midday. Momentum remains higher with futures within a nickel of our daily highs. The weekly export inspections were again extremely large boosting futures; they were at 1.910 million tons. The South American weather seeing little change, the market is questioning the strength at midday. The dollar is lower, crude higher and the stocks higher, so there is some outside market support. This strength brings beans back to the middle of our two week range. This also takes the market back above the 10-day and highest major moving average which may keep fund length coming into the complex. On the January chart the 10-day at $10.36 is now support with resistance at the $10.65 four-month high. WHEAT Wheat trade is mixed at midday with little fresh friendly news for wheat except spillover support from the row crops. Sure the dollar is lower on the day, but export news remains slow and the dollar remains at a high level. The weekly wheat export inspections were 453,633 tons which was a neutral number versus expectations. Moisture over the weekend was welcome for winter wheat areas. On the Kansas City March chart support is at the $0.01 contract low printed last Thursday, resistance is at the $4.21 10-day moving average and lowest major moving average. 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.