DTN Midday Grain Comments 12/22 11:51

DTN Midday Grain Comments 12/22 11:51 Grains Mostly Lower at Midday Trade is mostly lower at midday in quiet action. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat to lower with the Dow futures down 40. The interest rate products are lower. The dollar index is 9 points lower. Energies are mixed with crude up 0.45. Livestock is mostly higher. Precious metals are mixed with gold flat. CORN Corn trade is a penny lower at midday with spillover pressure from beans along with light chart selling. We closed below the 100-day and lowest major moving average by a quarter-cent on Tuesday, then a second day Wednesday. Two daily closes below all major moving averages is a chart sell signal. So some fear this negative chart item could lead to long liquidation ahead of the holiday. Ethanol margins remain stable with crude still holding over $50 level, and cheaper corn adding support to margins. Weaker unleaded prices have crimped ethanol margins with ethanol futures edging slightly higher today. Corn basis should be firm with futures are slipping. Brazilian exports of corn have picked up, but U.S. sales remained strong with 1.25 million metric tons on the weekly report, and 100,400 metric tons sold to Mexico. On the March chart support is at the $3.41 3/4 December low; resistance is at the $3.50 1/2 100-day moving average then the $3.55 20-day. SOYBEANS Soybean trade is 3 to 6 cents lower at midday with light selling returning overnight with continued progress in South America, and a weaker chart picture heading toward the holiday break. Meal is flat to $1 higher and oil is 55 to 65 points lower. This still has us set up for a forecast reaction the next two days. The weather looks better with some questions still lingering in the extended forecast. Soybean basis should be steady to firmer if futures continue to slip. The weekly sales were good again at 1.81 million metric tons, 139,700 of meal and 15,100 of oil. On the March chart, support is at $10.02, the 200-day, then the 100-day at $9.92. Resistance is at the 100-day at $10.35. WHEAT Wheat trade is narrowly mixed at midday with trade continuing to drift in the recent range in thin Holiday trade. Weather for the winter wheat areas looks fairly non-threatening and no big export news has shown up. The Southern Hemisphere harvest should continue to move along with good yields adding to the world supply situation. Weekly export sales were disappointing at 297,800 metric tons. On the KC March chart, support is the $3.99 low, with the 10-day at $4.13 resistance. The Minneapolis chart has held at support, but KC broke down Wednesday and Chicago a few days ago. There are limited fundamental reasons to be long wheat here other than long-term low prices. 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.