DTN Midday Grain Comments 12/28 11:20

DTN Midday Grain Comments 12/28 11:20 Corn, Beans Higher at Midday Soybeans are sharply higher at midday, with wheat and corn following suit. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat today with quiet trade. The interest rate products are weaker. The dollar index is 8 lower. Energies are mixed with crude up $0.25. Livestock trade is mostly firmer led by cattle. Precious metals are mixed with gold down 0.90. CORN Corn trade is 2 to 3 cents higher at midday with trade trying to put in a reversal after appearing to find support on Thursday. Spillover support from soybeans is also providing corn support. Corn basis looks to be flat with the holiday slowdown in effect along with weather slowing movement. The ethanol margins remain poor with ethanol futures edging higher this morning, clawing back the blender gains seen midweek. There is no weekly export sales report because of the shutdown. On the March chart the 20-, 50-, and 100-day moving average area of $3.79-$3.80 is resistance with support at the area of our low this week, $3.72 1/2, and the lower Bollinger Band at $3.73. SOYBEANS Soybean trade is 14 to 16 cents higher with improved trade optimism developing with China taking U.S. rice, along with more pessimism about Brazilian production from private sources. Meal is $6 to $7 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 down from early talk of 130 mmt. Argentina is seeing the potential for heavy rains which could cause flood losses. Basis will provide signals on the quantity of nearby cash business getting done with flat trade this week. South American currencies remain rangebound at the lower end of the recent trade. March support is the lower Bollinger band at $8.82 with the 100-day at $8.90 first resistance which we have moved through this morning, with trade testing the 50-day at $8.98 at midday. WHEAT Wheat trade is narrowly mixed at midday with trade trying hold the late session reversal from yesterday with support from the row crops but early gains have faded again.. 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 with domestic prices rising. 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.