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DTN Midday Grain Comments     12/12 11:05

   Midday Trade Broadly Firmer With Wheat Leading Futures Higher

   Corn futures are 6 to 8 cents higher; soybeans are 4 to 6 cents higher; 
wheat is 9 to 14 cents higher.  

By David Fiala
DTN Contributing Analyst

 General Comments

   

   

   The U.S. stock market is firmer with the Dow up 150. The dollar index is 30 
higher. Interest rate products are firmer. Energies are firmer with crude up 
.50. Livestock trade is mixed with hogs leading. Precious metals are flat to 
lower with gold down 3.70.

   CORN

   Corn futures are 6 to 8 cents higher with good buying during the day 
session, reversing Wednesday's losses with support from the fifth largest 
export sale on record hitting the daily wire with 1.6 million metric tons (mmt) 
heading to Mexico, with two-thirds of that as old-crop sales. Ethanol margins 
have narrowed with the stocks build reported Wednesday and firmer corn 
Thursday, with ethanol futures able to edge higher this morning, while blenders 
remain in a strong position. Open weather should allow for more clean-up 
harvest. Weekly export sales were better at 873,500 metric tons (mt). Basis has 
held up well with some strength showing up at processors again. On the March 
contract, support is the fresh low at $3.71 1/4, with the contract lows at 
$3.66 below that, with the 20-day at $3.78 resistance, which we are testing at 
midday. 

   SOYBEANS

   Soybean futures are 3 to 5 cents higher with trade struggling to clear the 
$9.00 area with seasonal pressure helping to cap gains ahead of a big weekend 
for trade. Meal is flat to $1.00 lower, and oil is 60 to 70 points higher. The 
real remains cheap vs. the dollar with Brazilian weather still in good shape; 
Argentina is more mixed, short term. Bean basis has moved to a more sideways 
short-term trend. Weekly export sales were mixed at 1.05 mmt of beans, 238,600 
mt of meal, and 30,000 of oil. January chart support is the lower Bollinger 
band at $8.65, which we are finally pulling away from, with trade just above 
the 20-day at $8.93, with the upper Bollinger band at 9.21.

   WHEAT

   Wheat futures are 9 to 14 cents higher with the winter wheats catching a bid 
during the day session with support from world values along with short 
covering. The Chicago/KC March spread is back to 86 cents, narrowing from the 
high, with KC gaining sharply the last two days before flattening Thursday. 
Chicago is also holding a 5-cent premium to Minneapolis, which has widened 
Thursday after sharply contracting. The dollar remains rangebound. Export 
business remains quiet with Russian values rising again and some midweek 
tenders. The forecast has some moisture for Kansas along with warmer temps. 
Weekly export sales showed improvement at 502,700 mt. The March KC chart 
support is the lower Bollinger band at $4.22, and resistance the 20-day at 
4.34, which we are above at midday.

   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)

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