DTN Midday Grain Comments 12/27 11:13

DTN Midday Grain Comments 12/27 11:13 All Grains Higher at Midday Trade is higher across the board 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 25. The interest rate products are lower. The dollar index is narrowly mixed. Energies are higher with crude up 0.70. Livestock is mostly lower in quiet trade. Precious metals are higher with gold $4.60 higher. CORN Corn trade is 5 to 8 cents higher at midday with trade following the lead of the stronger soybean trade overnight as we return from the Christmas break. Ethanol margins remain stable with crude still holding over $50 level, and corn still in the lower part of the recent range with ethanol futures flat to higher this morning, but the corn rally has narrowed them slightly this morning. Corn basis should be stable with good nearby demand. The weekly export inspections were good at 970,506 metric tons. On the March chart support is at the $3.41 3/4 December low; resistance is the 10-day and 20-day at $3.53, which we are testing at midday, with the 50-day at $3.56 above that. SOYBEANS Soybean trade is 15 to 20 cents higher at midday with the forecast looking drier and hotter again for Brazil, despite some recent rains over the break in Argentina. Meal is $6 to $7 higher and oil was 35 to 45 points higher. Soybean basis should be steady to firmer with the nearby demand with most rolling to the March contract this week if they haven't already. We moving closer to the heart of the South American growing season, which will amplify weather reactions. The earliest acres are being cut now, which will start to add near term completion for U.S. movement. The weekly export inspections were strong again at 1.701 million metric tons. On the March chart support is the 200-day at 10.03 which we moved back above overnight, with the 50-day at 10.20 the first level of resistance. WHEAT Wheat trade is 6 to 16 cents higher across the three contracts overnight with the Chicago trade leading action at midday. The dollar remains at the upper end of the range which will continue to limit action on strength. Weather for the winter wheat areas looks fairly non-eventful for the wheat belt, but some dryness has started to build. The Southern Hemisphere harvest should continue to move along with good yields adding to the world supply situation with some disruptive rains in Australia. Export inspections were better at 520,975 metric tons. On the Kansas City March chart support is the $3.99 low, with the 10-day at $4.12 at becoming support on strength this morning with the 50-day at $4.23 this next round of resistance. 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.