DTN Midday Grain Comments 12/19 11:02

DTN Midday Grain Comments 12/19 11:02 All Grains Lower at Midday Trade is lower at midday, led by soybeans. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat to higher with the Dow futures up 40. The interest rate products are higher. The dollar index is 20 points lower. Energies are flat with crude mixed. Livestock is mixed. Precious metals are mixed with gold up $5. CORN Corn trade is 3 to 5 cents lower at midday with some spillover pressure from the weaker soybean trade, and a lack of fresh news overall. Ethanol margins are fairly stable to start the week, but the softer energy values will likely limit blender margin improvement in the near term. The weekly export inspections were ok at 768,009 metric tons, and Japan bought 128,000 metric tons. Basis should remain steady to firm ahead of the holiday. On the chart support is at the $3.51 100-day then the $3.41 3/4 December low, resistance is at the $3.59 10-day then the $3.64 3/4 December high. SOYBEANS Soybean trade is 12 to 16 cents lower at midday with rains bring relief to some of the parched areas of South America, with a mixed forward forecast. Meal is $4 to $5 lower and oil is 25 to 35 points lower. The daily export wire will be watched closely again this week after significant activity last week with China in for 264,000 metric tons this morning. The weekly export inspections were strong at 1.731 million metric tons. Basis should be steady to firmer this week. On the January chart the $10.18 December low is support then the 50-day at 10.08. Resistance is the 10-day and 20-day at $10.33-$10.34, which we faded back below overnight. WHEAT Wheat trade is 2 to 5 cents lower at midday with row crops dragging wheat lower after the overnight support from the cold weather. Warmer temps are expected to return so the immediate stress should fade, and the extent of damage will be not be fully known for awhile. The protein spreads will be watched again after the strength last week. The strong dollar is limiting upside in the big picture for wheat but the rally has stalled for the moment after new 14-year highs made last week. The southern hemisphere harvest should continue to move along with good yields adding to the world supply situation. The weekly export inspections were ok at 478,213 metric tons. On the Kansas City March chart support is the 10-day at $4.10 with resistance the 20-day at $4.17. 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.