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DTN Midday Grain Comments     12/05 12:04

   Corn, Soybeans Higher at Midday

   Double-digit midday gains in beans and corn has market bulls in control.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are higher with the Dow futures up 70. The 
interest rate products are lightly lower. The dollar index is 39 lower. 
Energies are mixed with crude up $0.25. Livestock trade is mostly higher. 
Precious metals are lower with gold down $9.


   Corn trade is a dime higher at midday and near the daily high; we have seen 
some surprise strength since the day session open due to chart buying, 
spillover support from beans as well as a few other noted factors. The weekly 
export inspections were good at 1.15 million tons. Chart momentum is up at 
midday with futures moving above the $3.54 area where we found the 10-day, 
20-day and 50-day moving averages. Trend line resistance is at $3.61, then the 
$4.64 upper Bollinger Band, then the $3.69 4-month high. Support is at $3.54. 
The move last week was bearish, but now this surprise move this morning could 
have short covering a dominant market force this afternoon. 


   Soybean trade is 17-18 higher at midday, meal is up $8 and bean oil is up 5 
points at midday. Momentum remains higher with futures within a nickel of our 
daily highs. The weekly export inspections were again extremely large boosting 
futures; they were at 1.910 million tons. The South American weather seeing 
little change, the market is questioning the strength at midday. The dollar is 
lower, crude higher and the stocks higher, so there is some outside market 
support. This strength brings beans back to the middle of our two week range. 
This also takes the market back above the 10-day and highest major moving 
average which may keep fund length coming into the complex. On the January 
chart the 10-day at $10.36 is now support with resistance at the $10.65 
four-month high.  


   Wheat trade is mixed at midday with little fresh friendly news for wheat 
except spillover support from the row crops. Sure the dollar is lower on the 
day, but export news remains slow and the dollar remains at a high level.  The 
weekly wheat export inspections were 453,633 tons which was a neutral number 
versus expectations. Moisture over the weekend was welcome for winter wheat 
areas. On the Kansas City March chart support is at the $0.01 contract low 
printed last Thursday, resistance is at the $4.21 10-day moving average and 
lowest major moving average. 

   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 Fiala on Twitter @davidfiala


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