DTN Midday Grain Comments 12/22 11:26

DTN Midday Grain Comments 12/22 11:26 Grains Mixed in Slow Trade Slow holiday midday trade with net changes near unchanged. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower at midday with the Dow futures down 40 points. The interest rate products are lower. The dollar index is 17 higher. Energies are mixed with crude down 20 cents. Livestock trade is mixed with cattle lower. Precious metals are firmer with gold 7.60 higher. CORN: Corn trade is flat to fractionally higher at midday with action looking to consolidate above the $3.50 area on the March contract. We closed above $3.50 Thursday, so this looks to be a good close on the chart if we stay here. The 20-day, at $3.51, is always a major moving average the trade watches. Ethanol margins remain compressed, but futures have firmed off the lower end of the range and are up again this morning. Corn basis and carry remain steady. Chinese domestic corn values remain firm. The board will close for Christmas at noon today. 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, which we are consolidating above today then the 50-day moving average at $3.56. SOYBEANS: Soybean trade is flat to 1 cent higher at midday with trade trying to establish at the lower end of the range after the recent weakness. Meal is 0.50 to 1.50 lower, and oil is 10 to 20 points higher. 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. The daily wire will be watched closely for continued sale with South American currencies sliding with nothing the last two days, along with China being more restrictive on foreign matter, with 252,000 metric tons of soybeans sold today. On the January chart, support is the recent low at $9.46 1/2 scored this morning. Resistance is at the $9.74 200-day. WHEAT: Wheat trade is 1 to 2 cents lower at midday with trade working to consolidate above the resistance levels the winter wheat closed above Thursday with limited success so far today. 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 with trade staying around 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 $4.23, which we closed just above Thursday, with Chicago moving through its 20-day at $4.25. If we can consolidate here, the 50-day at $4.35 is the next round up. 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.