DTN Midday Grain Comments 12/18 11:23

DTN Midday Grain Comments 12/18 11:23 Wheat Higher; Corn, Soybeans Lower at Midday Wheat is firmer, while row crops are weaker 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 170 points. The interest rate products are mixed. The dollar index is 35 points lower. Energies are firmer with crude up 30 cents. Livestock trade is mostly lower. Precious metals are mixed with gold up 8.50. CORN: Corn trade is fractionally to a penny lower at midday with trade fading from early support from beans. The daily range for corn has only been 2 cents. Ethanol futures are at the low end of the range to start the week, with blenders continuing to see the most benefit to their margins. Corn basis and carry are expected to remain steady to start the week. The expiration of the December contract on Friday has nearby chart-watchers looking at the lower lows printed by December as a target for March. The weekly export inspections are expected to be in the 500,000 to 800,000 metric ton range with the official report delayed due to technical difficulties. USDA announced 168,000 metric tons of sorghum sold to China. On the March chart, support is the contract low at $3.46 1/2 printed Friday and is being tested at midday with resistance at the $3.52 20-day moving average, then the 50-day moving average at 3.58. SOYBEANS: Soybean trade is 5 to 7 cents lower in quiet trade. Futures are failing to extend overnight gains again and are scoring a fresh low for the move and extending the lows here at midday. Meal is $1 to $2 lower, and oil is flat to 10 points higher. South American weather should see more rain in the near term with planting wrapping up and moisture deficits so far for the growing season, with questions about the extended forecast as we get deeper into the growing season. Basis and carry are expected to remain sideways ahead of Christmas. The weekly export inspections are expected to be in the 1.25 million to 1.75 million metric ton range. USDA announced 396,000 metric tons sold to China. On the January chart, support is the recent low at $9.62 scored this morning. Resistance is at the $9.76 200-day. WHEAT: Wheat trade is 1 to 3 cents higher at midday with trade finding light buying with a test of upside resistance to start the week. The Plains continue to be mostly dry in the short term with some better moisture expected in the extended forecast. A winter storm is forecast for around Christmas with some winter-kill concerns possible. Russia is also looking at buying from farmers to support domestic prices, along with keeping exports boosted. The weekly export inspections are expected to be in the 300,000 to 500,000 metric ton range. On the March KC contract, chart support is the $4.10 1/2 fresh contract low scored on Monday, with the 10-day at $4.19 first chart resistance, which we are edging above this morning, with the 20-day at $4.26. 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 (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.