DTN Midday Grain Comments 12/13 11:44

DTN Midday Grain Comments 12/13 11:44 Grains Mixed at Midday Wheat leads at midday, with soybeans struggling with some double-digit losses. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 60. The interest rate products are mixed. The dollar index is 15 higher. Energies are mixed with crude up $0.40. Livestock trade is mixed. Precious metals are flat to higher with gold down $2.50. CORN Corn trade is flat to 1 cent higher with quiet midday trade with upside momentum slowing. Corn basis looks to be flat in the near term with better weather improving movement potential. Ethanol margins remain under pressure with energies remaining at the lower end of the range and ethanol futures remaining flat. The weekly export sales were in line with recent week at 903,200 metric tons. Milder weather should allow harvest to wrap up overall, and allow for better movement. 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 new high scored at $3.87 3/4. SOYBEANS Soybean trade is 9 to 11 cents lower with trade settling back into the range as Chinese purchases are confirmed with more focus switching back to what it would take to significantly reduce our carryout. Meal is $2.00 to $3.00 lower and oil is 25 to 35 points lower. South America continues to make good progress with early harvest approaching fast with a few dry pockets in Brazil drawing more worry. Basis will provide signals on the quantity of nearby cash business getting done with flat to slightly firmer trade so far this week. China purchases look to be in the 1.5 million to 2.0 million metric tons the last couple days with 1.13 confirmed on the daily wire today. The weekly export sales were soft with 792,300 metric tons of beans, 50,500 of meal, and 5,900 of oil. January support is at the 10-day at $9.10, which we are testing at midday. Resistance is the 200-day at $9.37. Wheat Wheat trade is 2 to 9 cents higher with improving exports and better chart momentum and Kansas City trade leading the market. The dollar has firmed slightly this morning with trade remaining near the upper end of the range. Australian harvest will continue in the near term. North American winter wheat is seeing milder weather. Russian/Ukrainian tensions have ramped up again. The weekly export sales were strong at 754,100 metric tons showing some building momentum On the March Kansas City chart support is at the 20-day at $5.00 that we cleared last week with the 50-day at $5.18 the next round up which we are above at midday with only the 100-day above the market now at $5.44. 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.