DTN Midday Grain Comments 12/27 10:52

DTN Midday Grain Comments 12/27 10:52 Wheat, Corn Higher at Midday; Soybeans Lower Corn futures are fractionally higher; soybeans 5 to 7 cents lower; wheat 5 to 9 cents higher. By David Fiala DTN Contributing Analyst General Comments Corn futures are fractionally higher; soybeans 5 to 7 cents lower; wheat 5 to 9 cents higher. The U.S. stock market is firmer with the Dow up 70. The dollar index is 45 points lower. Interest rate products are weaker. Energies are mixed with crude up 10 cents. Livestock trade is mixed. Precious metals are mixed with gold up $5. CORN Corn futures are flat to 1 cent higher with trade staying just below the $3.90 resistance area with a new high scored fractionally here as well. The weekly ethanol report should show steady production and stocks with futures treading water so far this week. Moisture looks to stick to the Plains and Eastern Corn Belt, short term, which should allow for some more harvest clean-up in spots. Basis should stay steady to firm with limited holiday movement. Export sales remain mediocre at 624,800 metric tons (mt). On the March contract support is at the 20-day moving average at $3.83, with major support at the $3.71 3-month low. Chart resistance is at the upper Bollinger band at $3.94, then the 200-day moving average at $4.07. SOYBEANS Soybean futures are 5 to 8 cents lower with selling picking up during the day session after new highs were scored overnight with fresh bullish news needed with overbought conditions. Meal is 3.50 to 4.50 lower and oil is 20 to 30 points higher, keeping crush margins solid. South American weather and forecasts will continue to be watched day to day, with short-term concerns limited. The export wire has been quiet this week, with exports sales soft at 736,200 mt, 138,000 mt of meal, and 37,400 of oil. The January chart support is at the 20-day moving average at $9.08 with resistance at the $9.54 upper Bollinger Band then the 9.59 1/2 9-month high. WHEAT Wheat futures are 5 to 9 cents higher with world values supporting action ahead of expected short-term rains across the Plains. The forecast has plenty of moisture for much of the Plains, with the above normal temps to continue overall with precipitation coming as rain instead of snow for most. Wheat saw a second strong week of export sales at 715,000 mt. Russian supplies continue to tighten, potentially adding some support as well. Spread action remains flat on the week with KC holding at an 80-cent discount to Chicago, while Minneapolis is at 6 cents. The March KC chart support is the old high at $4.68, with resistance the upper Bollinger band at 4.79. 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.