DTN Midday Grain Comments 12/18 10:50

DTN Midday Grain Comments 12/18 10:50 Soybeans Near Unchanged; Wheat, Corn Slightly Lower at Midday Corn is flat to 1 cent lower, soybeans are flat to 1 cent higher and wheat is 1 to 5 cents lower at midday Wednesday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer with the Dow up 30. The dollar index is 15 higher. Interest rate products are firmer. Energies are flat. Livestock trade is mixed. Precious metals are mixed with gold down $1.00. CORN Corn trade is flat to 1 cent lower with light selling at midday as we see profit-taking as we push into resistance levels. The weekly ethanol report showed production down slightly, off 8,000 barrels, and stocks down 17,000 barrels with ethanol futures flat to lower. Open weather should allow for more clean-up harvest with warmer-than-normal temperatures expected to return toward Christmas. Basis has held up well with some strength showing up at processors again, but firmer futures will likely limit further gains if sustained. On the March contract, support is the 20-day at $3.82, with the lower Bollinger Band at $3.70 below that, and resistance the upper Bollinger band at $3.88 which we are just below overnight, then the 3.89 1/2 high trade. SOYBEANS Soybean trade is narrowly mixed with trade working to consolidate gains while we wait to see what kind of short-term export business will materialize, along with good progress in South America. Meal is $1.00 to $2.00 higher, and oil is 35 to 45 points lower. The real remains cheap vs. the dollar but is back at the high end of the recent range with South American weather good in the near term. Bean basis has moved to a more sideways trend short term. January chart support is the 20-day at $8.95, with the upper Bollinger band at 9.28 serving as resistance, which we are just below overnight, then $9.35 where support was before the break in November. WHEAT Wheat trade is 1 to 5 cents lower with trade consolidating into the new range with the recent pattern of soft overnight trade before finding better action during the day session as we come off the lows. The Chicago/KC March spread is at 88 cents, narrowing from the high with mostly steady action so far. Chicago is also holding an 11-cent premium to Minneapolis, gaining at midday. 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 $4.62, which we are just above at midday, 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.