DTN Midday Grain Comments     12/11 11:22

   Grains Mixed at Midday

   Narrowly mixed midday trade is seen with some chart buying being met with 
fundamental selling due to limited fresh supportive news. 

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are firmer with the Dow futures up 120. The 
interest rate products are mixed. The dollar index is 18 higher. Energies are 
firmer with crude up $1.15. Livestock trade is mixed. Precious metals are flat 
to higher with gold flat. 

   CORN

   Corn trade is flat to 1 cent lower in quiet trade midday ahead of the WASDE 
report release at 11 AM Ethanol margins remain poor with a flat start to the 
week. Corn basis looks to be flat in the near term. The December WASDE report 
will be out this morning, but little change is expected from November with the 
January final numbers the longer term focus. The average 2018-19 domestic 
carryover guess is 1.744 billion bushels versus 1.736 on the November report, 
and the world number is at 308.4 million metric ton versus the surprise 307.5 
November number due to the big increase in China's carryover number. On the 
March chart the 20-, 50-, and 100-day moving averages at $3.77-$3.79 is our 
chart support area with resistance at the upper Bollinger Band at $3.88.

   SOYBEANS

   Soybean trade is 2 to 4 cents higher at midday with trade remaining within 
the last week's trade. Meal is flat to $1.00 higher and oil is 5 to 15 points 
higher. South America continues to make good progress with early harvest 
approaching fast with a few dry pockets starting to appear and CONAB holding 
production at 120 million metric tons vs. private sources at 130 last week. 
Basis will provide signals on the quantity of nearby cash business getting done 
with flat to slightly firmer trade so far this week with the extent of nearby 
Chinese business still very foggy with more promises of confirmation of details 
this week. The WASDE report is expected to have the domestic 2018-19 carryover 
at 938 million bushels versus 955 on the November report and the world 
carryover at 113.2 mb versus 112.1 last month. January support is at the 10-day 
at $9.01. Resistance is the 200-day at $9.39.

   WHEAT

   Wheat trade is narrowly mixed at midday with quiet trade. Russian exports 
have showed signs of slowing down in recent days, with more signs of U.S. 
business especially into the first quarter of 2019. The dollar strength has 
relaxed overnight. The report today will reconfirm large world numbers but 
should show a smaller harvest in Australia given last weeks comments. The 
average trade guess for the WASDE is for the 2018-19 domestic carryover to be 
at 969 million bushels versus 949 million a month ago. The world number is 
expected to be at 267.3 versus 266.7 million metric ton last month. On the 
March Kansas City chart, support is at the 20-day at $4.99 that we cleared on 
Friday with the 50-day at $5.20 the next round up. 

   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


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