DTN Midday Grain Comments 12/03 11:39

DTN Midday Grain Comments 12/03 11:39 All Grains Higher at Midday Soybeans lead trade higher across the board at midday; but we have not challenged the initial highs printed shortly after the open last night. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 200 points. The interest rate products are firmer. The dollar index is 30 lower. Energies are firmer with crude up $1.50. Livestock trade is mixed. Precious metals are firmer with gold $13.60 higher. CORN Corn trade is 4 to 5 cents higher at midday with trade following the lead of the soybeans after the weekend trade progress along with supportive chart buying. Ethanol margins remain poor with the energy complex needing to sustain a rally to improve margins into winter with ethanol futures up a penny and a half this a.m. Corn basis should likely fade with a firmer board, but winter weather will slow movement in the near term. Weekly export inspections remained solid at 1.035 million metric tons. Harvest is expected to remain incomplete for a bit with the weather as well. On the March chart, we have jumped over the 20-, 50-, and 100-day moving averages at $3.77-$3.78 with next resistance the overnight high at $3.85, and then the upper Bollinger Band at $3.88. SOYBEANS Soybean trade is 14 to 17 cents higher at midday with trade fading back from the 24-27 cent higher open after the U.S. and China scored significant trade progress this weekend with promised near-term ag product buying by China with the full details still to come. Meal is $6.00 to $7.00 higher and oil is 25 to 35 points higher. South American continues to make good progress with limited weather concerns at this juncture with excessive rain the biggest problem in Brazil with Argentina ahead of normal, and the local currencies remaining cheap. This will continue to provide a fundamental headwind even if trade with China normalizes with significant shipments out of Brazil coming soon. The weekly export inspections were inline with expectations at 1.041 million metric tons, but remain well off the normal pace. January support is now the day low at $9.06 1/4 which is the top of the gap, with resistance the overnight high at $9.35. WHEAT Wheat trade is 4 is 8 cents higher at midday with trade building on the close to last week with spillover from the row crops. Chart momentum is good in the short term. Kansas City wheat has scored a crossover on the oscillators with a good finish Friday likely adding more short-term buying. Russian exports have showed signs of slowing down with the squabble with Ukraine flaring up again. Australia confirmed their smallest crop in a decade. The weekly export inspections improved at bit at 472,665 metric tons. Weekly crop progress will likely show steady conditions, and planting and emergence lagging. On the March Kansas City chart, we have support at the 10-day at $4.94, with resistance the 20-day at $5.05 which we are just above at midday with the upper Bollinger Band at $5.31 above that. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.