DTN Midday Grain Comments 12/20 11:23

DTN Midday Grain Comments 12/20 11:23 Grains Mixed at Midday Wheat is the midday bright spot. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the DOW futures down 250. The interest rate products are firmer. The dollar index is 34 lower. Energies are weaker with crude down $2.30. Livestock trade is mostly higher. Precious metals are mixed with gold up 5.30. CORN Corn trade is 3 to 4 cents lower with trade fading into the early month gap left by trade news. Corn basis looks to be flat with better weather improving movement potential ahead of the likely year-end slowdown. The ethanol margins continue to be poor with more talk of layoffs and shutdowns, and futures edging lower again today. The daily wire showed an export sale to Mexico of 426,800 metric tons. Weekly export sales were strong at 1.97 million metric tons of old crop, and 524,600 of new. On the March chart the 20-, 50-, and 100-day moving averages at $3.79-$3.80 has failed to hold this AM, with support the lower Bollinger Band at $3.68. SOYBEANS Soybean trade is 1 to 3 cents lower at midday with range bound trade ongoing with focus on forward sales and trade firming back from early lows. Meal is 0.50 to 1.50 higher and oil is 10 to 20 points lower. 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 along with sales on the daily wire of 204,000 metric tons to China, 257,000 to unknown, and 100,000 of meal to Colombia. South American currencies have firmed a touch in the near term. Weekly export sales were strong at 2.97 million metric tons, meal was 300,000 metric tons, and oil was 35,700 metric tons. January support is the 50-day at $8.86, with the 20-day at $9.00 nearby resistance then the 10-day at $9.09. WHEAT Wheat trade is 3 to 5 cents higher at midday with choppy trade ongoing with trade trying to hammer out a range. The dollar is breaking lower again this morning, which should add some more support. 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 with Russia having an export related meeting tomorrow. Weekly export sales were softer at 313,600 metric tons. On the March Kansas City chart support is at the 20-day at $5.04 with the 10-day at $5.14 just above the market 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.