DTN Midday Grain Comments 12/30 11:20

DTN Midday Grain Comments 12/30 11:20 Grains Trending Higher at Midday Light gains are seen at midday in slow holiday action. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are slow and lower with the Dow futures down 5. The interest rate products are higher. The dollar index is 58 lower. Energies are lower with crude down 0.20. Livestock is mixed. Precious metals are mixed with gold down .60. CORN Corn trade is 1 to 2 cents higher at midday with trade seeing some light buying as we wrap up 2016. Corn appeared to be benefiting from some buying corn versus selling soybean spreading early, but here at midday beans are starting to provide corn spillover support. Outside markets are mixed with crude and the dollar lower overnight. The weekly export sales were good at 958,600 metric tons. Ethanol margins remain stable but seeing a little pressure this morning with corn higher and ethanol lower. There is limited fresh news or change in the latest South American forecasts to direct trade into the weekend. So some light weather premium would seem to make sense going into the long holiday weekend. Trade will close at the normal time this afternoon and open Monday night. On the March chart the 20-day moving average at $3.54 1/4 is resistance then the 50-day at $3.55, support is at $3.45 1/2, the 3-week low, then $3.41 3/4, the three-month low. SOYBEANS Soybean trade is 2 to 4 cents higher at midday in fairly quiet trade with trade likely going to react to the latest forecast updates. Meal is $1 higher and bean oil is narrowly mixed. Early Brazilian harvest is showing strong yields but the majority of the crop has a long way to go until maturity, with the next two months the most important growing weather months. Argentina is still working on wrapping up planting and has switched to being two wet versus dry two weeks ago. The weekly export sales were good at 974,100 metric tons of beans, 251,900 metric tons of meal, and 18,900 of oil. Sales should start to drop off with more world business booking out of South America. On the March chart support is at the $10.04 200-day then the $9.94 100-day moving average. Resistance is at the $10.18 10-day then the $10.31 20-day. WHEAT Wheat trade is 2 to 5 cents higher with the weaker dollar adding support, with Chicago showing the most strength at midday. The dollar has continued to slide overnight but still is near the upper end of the range. Weather for the winter wheat areas looks fairly non-eventful for the wheat belt, but some dryness has started to build again with the mild temps in the west. The Southern Hemisphere harvest should continue to move along with good yields adding to the world supply situation with some disruptive rains in Australia. The weekly export sales were better 568,100 metric tons. On the Kansas City March chart we are just above the 20-day at $4.10, and the 10-day at $4.12. The next support level is at the $3.99 low. Resistance is the 50-day at $4.23. 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.