DTN Midday Grain Comments 12/27 11:03

DTN Midday Grain Comments 12/27 11:03 Grains Mixed at Midday Row crops firmer, wheat weaker at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 270. The interest rate products are weaker. The dollar index is 35 lower. Energies are weaker with crude down $1.00. Livestock trade is mostly firmer led by cattle. Precious metals are mixed with gold up 4.10. CORN Corn trade is 1 to 2 cents higher at midday with trade trying to put in a reversal after reaching oversold conditions along with spillover support from the soybeans. Corn basis looks to be flat with the holiday slowdown in effect. The ethanol margins remain poor with ethanol futures edging higher today, clawing back the blender gains seen yesterday. There is no weekly production report with the shutdown. On the March chart the 20-, 50-, 100-day moving average area of $3.79-$3.80 is now resistance with support the lower Bollinger Band at $3.73. SOYBEANS Soybean trade is 2 to 3 cents higher with trade looking to ease heavily oversold conditions with export uncertainty and progress in South America. Meal is $1 to $2 higher and oil is 5 to 15 points higher. South America remains in the recent weather pattern with some dry pockets, and the start of early harvest in Brazil with overall concerns still limited with the Brazilian crop still pegged around 120 million to 124 million metric tons. Argentina is seeing the potential for heavy rains. Basis will provide signals on the quantity of nearby cash business getting done with flat recent trade. South American currencies have turned weaker again. January support is the fresh low at $8.70 with the lower Bollinger Band at $8.72 first resistance, which we are testing at midday. WHEAT Wheat trade is flat to 3 cents lower at midday with trade trying to score a reversal as well as wheat has gotten oversold as well, but we were unable to sustain early gains. The dollar is carving out more of a range as well with the down trend potentially supportive longer term. Australian harvest will continue in the near term, while Argentina battles quality issues, forcing Brazil to look elsewhere for some imports. North American winter wheat is seeing milder weather, helping late emergence with little nearby weather concerns and additional moisture coming. Russia has continued to export aggressively. On the March Kansas City chart, support is at the fresh low at $4.92 with the 20-day at $5.06 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.