DTN Midday Grain Comments 12/20 11:34

DTN Midday Grain Comments 12/20 11:34 Corn, Wheat Higher at Midday; Soy Fractionally Lower Corn and wheat are the midday leaders. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed at midday with the Dow futures up 15 points. The interest rate products are lower. The dollar index is 12 lower. Energies are mixed with crude up 40 cents. Livestock trade has cattle sharply lower, hogs higher. Precious metals are firmer with gold up 3.20. CORN: Corn trade is 1 to 2 cents higher at midday in continued quiet trade. March futures appear to want to migrate around the $3.50 area. The weekly ethanol report showed production 1.1% lower, stocks down 0.24% and gasoline demand 3.7% higher. Corn basis and carry remain steady. Chinese domestic corn values have continued to build a firmer trend, signaling potential business down the road. South American weather news continues to get mixed reviews with some stories developing but others noting normal crop scenarios. With South American acreage near unchanged from a year ago, the market still sees the potential for the record supplies to be sustained. On the March chart, support is the contract low at $3.46 1/2, which has held so far this week, with resistance at the $3.51 20-day moving average, then the 50-day moving average at $3.56. SOYBEANS: Soybean trade is fractionally lower at midday with trade bouncing off fresh lows scored overnight. Meal is $1 to $2 higher and soybean oil is 10 to 20 points lower. South American weather keeps short-term moisture in play with Argentina planting wrapping up with recent rains turning a bit lighter than expected. Basis and carry are expected to remain sideways ahead of Christmas. The export wire was quiet Wednesday, and the Argentine currency has scored new lows. On the January chart, support is the recent low at $9.53 scored overnight. Resistance is at the $9.75 200-day. WHEAT: Wheat trade is 1 to 5 cents higher with trade shaking off overnight weakness to push back to resistance on the winter wheat contracts. The Plains continue to be mostly dry in the short term with some better moisture expected in the extended forecast. A winter storm is forecast for around Christmas with some winterkill concerns possible on the cold snap. The dollar has gravitated toward the lower end of the recent range but has found support again at 93 on the index. On the March KC contract, chart support is the $4.10 1/2 fresh contract low scored on Monday, with the 10-day at $4.17 serving as first support, with the 20-day at $4.24 as more substantial resistance, which we are testing at midday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.