DTN Midday Grain Comments 12/16 11:03

DTN Midday Grain Comments 12/16 11:03 Grains Higher at Midday Broadly firmer trade at midday with wheat leading grains higher. By David Fiala DTN Contributing Analyst General Comments The Dow Jones Industrials are up 184 points and the U.S. dollar index is down 0.07. February crude oil is up 13 cents and February gold is down $2.50. February cattle are down 35 cents and February hogs are up 17 cents. CORN Corn trade is 5 to 7 cents higher with follow-through buying on trade optimism, along with increased Argentina export taxes. Outside markets are supportive with the dollar easing lower. Ethanol margins have narrowed with the blender end holding up better. Open weather should allow for more clean-up harvest with warmer-than-normal temps expected to return. Basis has held up well with some strength showing up at processors again, but firmer futures will likely limit further gains. Weekly export inspections totaled 27.0 million bushels (mb). On the March contract, support is the 20-day at $3.78 that we held above, with the lower Bollinger Band at $3.73 below that. Resistance is the upper Bollinger band at $3.83, which we are above overnight. SOYBEANS Soybeans trade is 8 to 10 cents higher overnight with trade testing the highs from Friday with support from trade optimism and Argentina export taxes on soybeans as well. Meal is $2.00 to $3.00 higher and oil is 40 to 50 points higher. The real remains cheap vs. the dollar but is back at the high end of the recent range with Brazilian weather still in good shape, with Argentina more mixed short term with good weekend coverage. Bean basis has moved to a more sideways trend short term. January chart support is the lower Bollinger band at $8.66, which we are finally pulling away from, with trade the 20-day at $8.93. The upper Bollinger band at $9.20 is serving as resistance. WHEAT Wheat trade is 7 to 11 cents higher with Minneapolis leading as trade looks to consolidate into a higher range. The Chicago/KC March spread is back to 86 cents, narrowing from the high with mostly steady action overnight. Chicago is also holding a 4-cent premium to Minneapolis with Minneapolis gaining overnight. The dollar is back near the lower end of the range. Export business remains quiet with Russian values rising again. Weekly export inspections totaled 18.6 mb. The forecast has some moisture for Kansas along with warmer temps. The March KC chart support is the 20-day at $4.34, which we jumped above Sunday, with resistance the upper Bollinger band at $4.50, which we are just above overnight. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (AG) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.