DTN Midday Grain Comments 12/16 11:24

DTN Midday Grain Comments 12/16 11:24 Trade is Mixed in Midday Trade Mixed trade is seen at midday; many noting holiday trade already. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat to higher with the Dow futures up 20. The interest rate products are mixed. The U.S. dollar index is 40 points lower. Energies are higher with crude up .85. Livestock is higher with cattle leading. Precious metals are higher with gold up $11. CORN: Corn trade is 1 cent to 2 cents lower with just over a nickel range so far; chart pressure was seen last night but the tone is flat at midday. Ethanol margins remain strong same as the firm ethanol trade since Thanksgiving, which is continuing to support corn usage. We are down to a one-week low but remain within the trading range of the past few months. This has kept the carry and the basis levels fairly flat this week. On the March chart, trade has slipped below the nearby moving averages at $3.56 to $3.58 becoming resistance, with the recent lows at $3.49 now support, then $3.41 3/4 December the low. The 20-day at $3.56 is always an important major moving average; if we cannot above it we should not be surprised to see some pressure Friday afternoon. SOYBEAN: Soybean trade is 2 cents to 6 cents higher at midday with light commercial buying continuing to support trade. The expected rains this weekend in Argentina has limited upside, but we could add some weather premium heading into the weekend. Meal is $2 to $3 higher, and bean oil is narrowly mixed. The South American forecast looks to bring some rains to Argentina, and the scope of coverage will dictate trade going into next week, along with the latest forecasts. The daily export wire remains active with 205,000 metric tons of beans announced as sold to unknown. Basis has remained fairly stable this week. On the January chart, the 50-day at $10.05 is support, with resistance the 10- and 20-day moving averages at $10.33, which are testing at midday. WHEAT: Wheat trade is 2 cents lower to 4 cents higher at midday with the protein spreads leading Minneapolis wheat higher at midday. The strong dollar is limiting upside in the big picture, but Friday it is lower. The cold extended forecast and short-covering continues to give us chances for a bounce. The Southern Hemisphere harvest should continue to move along with good yields adding to the world supply situation. India is not expected to extend duty free imports past March at this point. On the Kansas City March chart support is the 10-day at $4.10 with resistance the 20-day at $4.16. 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.