DTN Midday Grain Comments 12/20 11:20

DTN Midday Grain Comments 12/20 11:20 Grains Trending 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 higher with the Dow futures up 80. The interest rate products are lower. The dollar index is 30 points higher. Energies are higher with crude up 60. Livestock is mostly lower. Precious metals are mixed with gold down $12.80. CORN Corn trade is 3 to 4 cents lower at midday with spillover pressure from beans and some chart selling starting to show up. The weekend South American weather was viewed as neutral to negative. The positive move in the ethanol production board margins yesterday and the lower corn again today is good for corn use. Corn basis should be steady to firm ahead of the holiday if the futures are slipping. It seems like most of the attention is on beans this morning with the corn chart turning down, but no one seems to be looking for much downside. On the chart, support is now the $3.41 3/4 December low after we broke below the $3.50 1/2 100-day moving average, resistance is at the $3.55 20-day then the $3.64 3/4 December high. SOYBEANS Soybean trade is 15 to 18 cents lower at midday due to follow-through selling and better weather. Meal is $4 to $5 lower and bean oil is 40 to 50 points lower. The daily export wire was quiet this morning with trade slowing on the break. South America looks to have OK rain coverage in the near-term forecasts. Soybean basis should be steady to firmer this week with crushers continuing to soak up soybeans. New crop 2017 beans are back below $10 at midday which is the first time in about a month. On the January chart, support is at $10.00 then the 100-day at $9.90 after we moved below the 200-day at $10.06 with new lows made for the month. Resistance is at the 200-day then the $10.28 10-day moving average. There is a good chance for very volatile trade this afternoon. WHEAT Wheat trade is flat to 2 cents lower in quiet trade at midday with choppy action expected to continue. The stronger dollar is adding pressure along with the weaker row crop trade. The protein spreads will be watched again after the strength last week, but the opened the week on a soft note with some light improvement this morning. The Southern Hemisphere harvest should continue to move along with good yields adding to the world supply situation. On the Kansas City March chart support is the $3.99 low, with the 10-day at $4.12 above that. 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.