DTN Midday Grain Comments 02/26 11:08

DTN Midday Grain Comments 02/26 11:08 Wheat Mixed at Midday; Corn and Beans Lower Trade is lower at midday with mixed outside market influence. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are mixed with the DOW futures down 10. Interest rate products are higher. The dollar index is 88 points higher. Energies are mixed with crude up .80. Livestock trade is mixed with cattle higher. Precious metals are mixed with gold down $21. CORN Corn futures are 1 to 3 cents lower at midday. Ethanol margins should be getting a boost from the stronger energy complex with the switchover to the more expensive spring gasoline blends under way. South American corn looks to catch better rains for double-crop acres in the extended forecast. The USDA Ag Outlook Forum put new-crop carryout for this year at 1.9771 billion bushels on a 168 yield and 90 million acres. The sell-off this week appeared to be in anticipation of negative numbers like we have discussed. Basis has been soft this week with more active farmer movement. On the March chart, support is now the contract low at $3.48 after we worked through the $3.58 recent low Thursday. Resistance is at the 20-day at $3.64. SOYBEANS Soybean futures are 1 to 3 cents lower with light, two-sided trade. Meal is $3 to $4 lower, and oil is 25 to 35 points higher. The extended forecast shows some rains that could slow South American harvest, and port backlogs will continue for the near future. Crop size estimates from private sources have edged higher this week with a range of 98 million to 101.6 million metric tons. The USDA Ag Outlook Forum placed acres slightly lower at 82.5 million with projected carryouts at 440 million bushels on a 46.7 bushel yield, which is not as high as many expected, which may limit downside in beans near term. On the March soybean chart support is the February $8.55 1/2 low with resistance at the $8.73 20-day moving average. WHEAT Wheat futures are 1 to 4 cents lower at midday with the weaker row crops and stronger dollar dragging wheat prices down. Egypt returned to the market Thursday and was able to secure further supplies from the Black Sea area as U.S. wheat remains uncompetitive on the world market. Weather looks nonthreatening in the near term. The USDA Ag Outlook Forum has wheat acres at 51.4 million acres with a 938 million bushel carryout. On the March KC chart the new low at $4.37 3/4 is support with the 10-day at $4.49 nearby resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.