DTN Midday Grain Comments 12/10 11:32

DTN Midday Grain Comments 12/10 11:32 Beans, Wheat Lower at Midday Narrowly mixed midday trade is seen with some chart buying being met with fundamental selling due to limited fresh supportive news. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weak with the Dow futures down 420. The interest rate products are weaker. The dollar index is 60 higher. Energies are weaker with crude up $1.15. Livestock trade is mixed. Precious metals are flat to lower with gold flat. CORN Corn trade is fractionally higher at midday after seeing light selling overnight and this morning with position squaring ahead of the December report tomorrow. Ethanol margins remain poor with Christmas travel likely to add some short-term consumption. Corn basis should likely fade with a firmer board the past week with more open weather likely to help shipping. The weekly export inspections were a little softer at 876,052 metric tons. The December WASDE report will be out on Tuesday, but little change is expected from November with the January final numbers the longer-term focus. The average 2018-19 domestic carryover guess is 1.744 billion bushels versus 1.736 on the November report, and the world number is at 308.4 million metric ton versus the surprise 307.5 November number due to the big increase in China's carryover number. The USDA also announced 1.625 million metric tons with 1.1 million old crops, and the balance new crop. On the March chart the 20,50, and 100-day moving averages at $3.77-$3.79 is our chart support area with resistance at the upper Bollinger Band at $3.88. SOYBEANS Soybean trade is 2 to 3 cents lower at midday with trade remaining rangebound. Meal is fractionally lower, and oil is 10 points higher. South America continues to make good progress with early harvest approaching fast. Basis will provide signals on the quantity of nearby cash business getting done with flat to slightly firmer trade so far this week with the extent of nearby Chinese business still very foggy with more promises of confirmation of details this week, but we did see 125,000 metric tons sold to unknown on the new crop. The WASDE report is expected to have the domestic 2018-19 carryover at 938 million bushels versus 955 on the November report and the world carryover at 113.2 versus 112.1 last month. The weekly export inspections were about steady at 922,064 metric tons. January support is at the 10-day at $9.01. Resistance is the 200-day at $9.39. WHEAT Wheat trade is 2 to 5 cents lower at midday with trade fading off the top end of the range with spillover pressure from beans. Russian exports have showed signs of slowing down in recent days, with more signs of US business. The sharply stronger dollar is a headwind today. The report today will reconfirm large world numbers but should show a smaller harvest in Australia given last weeks comments. The weekly export inspections were within expectations at 480,614 metric tons. The average trade guess for the WASDE tomorrow is for the 2018-19 domestic carryover to be at 969 million bushels versus 949 million a month ago. The world number is expected to be at 267.3 versus 266.7 million metric ton last month. On the March Kansas City chart support is at the 20-day at $4.99 that we cleared on Friday with the 50-day at $5.20 the next round up. 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.