DTN Midday Grain Comments 12/04 11:34

DTN Midday Grain Comments 12/04 11:34 Grains Mixed at Midday Row crops firmer, wheat struggling at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 230 points. The interest rate products are weaker. The dollar index is 15 lower. Energies are narrowly mixed. Livestock trade is mixed. Precious metals are mixed with gold $4.20 higher. CORN Corn trade is 1 to 2 cents higher at midday with trade working to consolidate recent gains with trade progress excitement cooling off. Ethanol margins remain poor with the energy complex needing to sustain a rally to improve margins into winter with ethanol futures flat this morning. Corn basis should likely fade with a firmer board, but winter weather will slow movement in the near term. 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 Monday high at $3.85, and then the upper Bollinger Band at $3.88. SOYBEANS Soybean trade is 3 to 6 cents higher at midday with trade looking for confirmation of fresh exports to China with plenty of debate remaining on the specifics of what was agreed to this weekend and two sided trade so far today. Meal is $0.50 to $1.50 lower and oil is 20 to 30 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 drier in the near term with planting ongoing 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. January support is now the day low at $8.99 1/2 still leaving a gap from 8.95 overnight, with resistance the Monday high at $9.35. WHEAT Wheat trade is 1 to 5 cents lower at midday with trade giving back the Monday gains overnight with consolidation of the rebound likely needed to push higher. Kansas City wheat has continued to narrow the discount to Chicago in recent days, but is slightly wider this morning. Russian exports have showed signs of slowing down, but Ukraine shipments have resumed around the Azov Sea. Australia confirmed their smallest crop in a decade. Weekly crop progress reports are wrapped up until spring. On the March Kansas City chart we have support at the 20-day at $5.03 which we are fractionally below at midday with the 10-day at $4.94 below that with the upper Bollinger Band at $5.27 as resistance. 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.