DTN Midday Grain Comments 12/19 11:02

DTN Midday Grain Comments 12/19 11:02 All Grains Lower at Midday Trade is lower across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 180. The interest rate products are mixed. The dollar index is 48 lower. Energies are stronger with crude up $1.30. Livestock trade is mixed. Precious metals are firmer with gold up 6.50. CORN Corn trade is 1 to 2 cents lower at midday with choppy trade continuing into midweek. Corn basis looks to be flat with better weather improving movement potential ahead of the likely year-end slowdown. The weekly ethanol report showed steady production, and stocks up nearly a million barrels, keeping pressure on ethanol futures. Trade will be watching the daily wire for more sales with nothing showing up so far this week. On the March chart, the 20-, 50-, and 100-day moving averages at $3.79-$3.80 is our chart support area with resistance at $3.87 3/4 then the 4-month high at $3.90 1/2. SOYBEANS Soybean trade is 6 to 8 cents lower with more sell-the-fact action after confirming a 1.119 million metric ton sale to China. Meal is $2.00 to $3.00 lower and oil is flat to 10 points higher. South America is focused on the dry pockets in Brazil along with quicker progress in Argentina overall, and very early harvest starting in Brazil. Basis will provide signals on the quantity of nearby cash business getting done with flat to slightly firmer trade this last week and some rail bids appearing and along with better river bids. South American currencies remain weak as well. January support is the 20-day at $9.00, with the 10-day at $9.10 nearby resistance then the recent high at $9.29. WHEAT Wheat trade is 3 to 8 cents lower at with wheat seeing selling again overnight in the absence of fresh news and overbought conditions. The dollar has drifted lower to start the week, but remains elevated overall for more direction expected from the Fed today. Australian harvest will continue in the near term, while Argentina battles quality issues, forcing Brazil to look elsewhere. North American winter wheat is seeing milder weather, helping late emergence. Russian/Ukrainian issues have been quieter this week. On the March Kansas City chart, support is at the 50-day at $5.16 that we are just below at midday with the 20-day at $5.03 below 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.