DTN Midday Grain Comments 12/28 11:26

DTN Midday Grain Comments 12/28 11:26 All Grains Lower at Midday Corn, soybean and wheat futures are lower at midday. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are higher at midday with DOW futures up 40 points. Interest rate products are lower. The dollar index is 27 lower. Energies are mixed with crude down .10. Livestock trade is mostly higher. Precious metals are firmer with gold 5.20 higher. CORN Corn futures are 2 to 3 cents lower at midday with spillover pressure from soybeans helping to drag trade lower. Weekly ethanol production was up 17,000 barrels per day, stocks were down 289,000 barrels, with ethanol futures higher at midday. Corn basis and carry have been mostly steady this week. Chinese domestic corn values remain firm. The weekly export sales will be delayed until Friday. On the March chart support is the 20-day at $3.51, with the 10-day at $3.50 below that then the 50-day moving average at 3.56 is first resistance. We have had several daily closes just above the 20-day, and we are testing that support at midday. SOYBEANS Soybean futures are 7 to 9 cents lower with trade working in the lower end of the recent range, with little fresh news to push buying and concerns about export demand with rule changes and lower protein yield by American soybeans this year. Meal is $1 to $2 lower and bean oil is 35 to 45 points lower. South American weather has southern/central Brazil wetter with scattered rains elsewhere for Argentina, without excessive heat for the most part. Basis and carry are expected to remain sideways this week with some processor improvement. The daily wire will be watched closely for continued sales with nothing on the daily wire. On the January chart support is the recent low at $9.46 1/2 scored last week. Resistance is at the $9.57 10-day then the 200-day at $9.74. WHEAT Wheat futures are 1 to 3 cents lower in quiet trade at midday with trading on the winter wheat continuing to consolidate above resistance. The Plains continue to be mostly dry and cold in the short term with some snow cover in the northern winter wheat growing areas, mostly north of I-70. Forecasts remained mixed as far as the extent of the cold to the south through the weekend but record lows appear possible. The dollar has gravitated towards the lower end of the recent range with trade moving towards 92 on the index. On the March KC contract, chart support is the $4.10 1/2 fresh contract low scored on last week, with the 10-day at $4.17 serving as first support, with the 20-day at $4.22 becoming support if trade can hold up today. If we can consolidate here, the 50-day at $4.34 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.