DTN Midday Grain Comments 12/11 11:34

DTN Midday Grain Comments 12/11 11:34 Grains Lower at Midday Trade is lower across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the Dow futures up 25 points. The interest rate products are mixed. The dollar index is 15 points lower. Energies are higher with crude up 35 cents. Livestock trade is lower. Precious metals are mixed with gold narrowly mixed. CORN Corn trade is 3 to 4 cents lower at midday with pressure spilling over from soybeans and wheat. Ethanol margins look to be flat to start the week with ethanol futures edging lower this morning. Basis and carry is expected to be stable to start the week. Corn in South America is mostly two to three weeks out from pollination starting with an improved extended forecast. Weekly export inspections were disappointing at 658,403 metric tons. USDA announced 110,000 metric tons sold to Mexico. On the March chart, support is the contract low at $3.48 3/4 printed three weeks ago with trade testing that area at midday. Resistance is at the $3.53 20-day moving average, then the 50-day moving average at 3.59. SOYBEANS Soybean trade is 5 to 8 cents lower at midday with trade seeing pressure again from an improved extended forecast and demand questions in the near term. Meal is 3.50 to 4.50 lower, and oil is 10 to 20 points lower. South American weather looks better with rains expected in the next seven days for some of the driest areas and better coverage after that heading toward Christmas. The weekly export inspections were very disappointing at 1.228 million metric tons. On the January chart, support is the 100-day at $9.81. Resistance is at the $9.94 10-day. WHEAT Wheat trade is 1 to 7 cents lower at midday with fresh lows being scored again for the winter wheats on broader selling pressure with spillover from the weak row-crop trade. The Plains look to remain dry with above-normal temperatures returning. The Australian harvest should continue to push on this week with overall harvest pressure starting to fade. Russia remains the dominant origin in the world export markets, with the recent dollar rally adding to that advantage. Weekly export inspections were soft again at 316,387 metric tons. On the March KC contract, chart support is the $4.13 fresh contract low scored on overnight, with the 20-day at $4.31 noted chart resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (SK) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.