DTN Midday Grain Comments 12/21 11:41

DTN Midday Grain Comments 12/21 11:41 Corn, Wheat Higher at Midday; Soy Lower Corn and wheat are the midday leaders with beans lower on chart selling. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the Dow futures up 110 points. The interest rate products are mixed. The dollar index is narrowly mixed. Energies are mixed with crude up 10 cents. Livestock trade is mostly higher. Precious metals are narrowly mixed. CORN: Corn trade is 1 to 2 cents higher at midday with trade trying to consolidate over the $3.50 mark. Ethanol margins remain compressed, but futures have firmed off the lower end of the range. Corn basis and carry remain steady. Chinese domestic corn values remain firm. South American weather news should remain mixed at midday. With South American acreage near unchanged from a year ago, the market still sees the potential for the record supplies to be sustained. Weekly export sales were very strong at 1.56 million metric tons. On the March chart, support is the contract low at $3.46 1/2, which has held so far this week. Resistance is at the $3.51 20-day moving average, which we are testing at midday, then the 50-day moving average at 3.56. SOYBEANS: Soybean trade is 4 to 6 cents lower at midday with trade grinding into new lows for the move. Meal is flat to $1 lower, and oil is 25 to 35 points lower. South American weather is shifting back toward drier in the immediate term after early week rains for Argentina, with southern Brazil seeing better rain. Basis and carry are expected to remain sideways ahead of Christmas. Weekly export sales were good at 1.74 million metric tons, 184,100 of meal and 24,200 of oil. The daily wire will be watched closely for continued sales, with South American currencies sliding with nothing the last two days. On the January chart, support is the recent low at $9.48 1/2 scored this morning. Resistance is at the $9.75 200-day. WHEAT: Wheat trade is flat to 3 cents higher overnight with trade finding some light buying this morning with trade working through initial resistance levels for the winter wheat. The Plains continue to be mostly dry in the short term with colder air coming soon, which may stress thinner stands. The dollar has gravitated toward the lower end of the recent range, slipping back through 93 on the index. Weekly export sales showed improvement again at 796,300 metric tons. 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 just below at midday, with Chicago moving through its 20-day at $4.25. 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.