DTN Midday Grain Comments 12/17 11:01

DTN Midday Grain Comments 12/17 11:01 Soy, Wheat are Midday Leaders Corn futures are 1 to 2 cents higher; soybeans are 4 to 6 cents higher; and wheat is 1 to 4 cents higher. By David Fiala DTN Contributing Analyst General Comments Corn futures are 1 to 2 cents higher; soybeans are 4 to 6 cents higher; and wheat is 1 to 4 cents higher. The U.S. stock market is weaker with the Dow up 60. The dollar index is 20 higher. Interest rate products are mixed. Energies are firmer with crude up .60 higher. Livestock trade is firmer. Precious metals are mixed with gold down 1.00. CORN Corn futures are 1 to 2 cents higher with trade turning choppy after the strong start to the week. We are shifting more to a wait-and-see on trade and into holiday mode. Ethanol margins have narrowed with the blender end holding up better, and futures back above $1.40 to start the week. Open weather should allow for additional clean-up harvesting with warmer than normal temps expected to return towards Christmas. Basis has held up well with some strength showing up at processors again but firmer futures will likely limit further gains. On the March contract support is the 20-day at $3.79 that we held above, with the lower Bollinger Band at $3.73 below that, and resistance the upper Bollinger band at $3.87, which we are above at midday, then the 3.89 1/2 high trade. SOYBEANS Soybean futures are 4 to 6 cents higher with trade working to consolidate gains while we wait to see what kind of short-term export business will materialize. Meal is flat to $1.00 higher and oil is 55 to 65 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 playing a little bit of catch up. Bean basis has moved to a more sideways trend, short-term. January chart support is the 20-day at $8.94, with the upper Bollinger band at 9.23 serving as resistance, which we are above at midday, then $9.35 where support was before the break in November. WHEAT Wheat futures are flat to 4 cents higher with trade consolidating into the new range after testing resistance Monday on strong buying in winter wheat. The Chicago/KC March spread is at 88 cents, narrowing from the high, with mostly steady action so far. Chicago is also holding a 16-cent premium to Minneapolis with Chicago gaining Tuesday. The dollar is back near the lower end of the range. Export business remains quiet with Russian values rising again. The forecast has some moisture for Kansas along with warmer temps. The March KC chart support is the upper Bollinger band at $4.57 which we are just above at overnight, then the $4.68 area that was summer support before failing in August. 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.