DTN Midday Grain Comments 03/02 11:08

DTN Midday Grain Comments 03/02 11:08 Grains Trending Higher at Midday Trade is higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow up 10 points. The interest rate products are higher. The dollar index is 13 points higher. Energies are mixed with crude up 0.45. Livestock trade is mostly lower. Precious metals are lower with gold down $4. CORN Corn trade is flat to 2 cents higher at midday with trade continuing to grind along range-bound but finding some spillover support from soybeans. The weekly ethanol production report showed production down 7,000 barrels per day, and stocks down 500,000 barrels, with ethanol futures flat to lower at midday. South American planting progress should continue on second crop corn, with first crop harvest starting to become more widespread fairly soon. The market has little fresh news to go on following the slightly negative news from the USDA Outlook Forum last week. On the May chart, support is at the contract low of $3.54 1/4 with resistance at the 20-day at $3.65. SOYBEANS Soybean trade is 4 to 6 cents higher at midday with firmer trade emerging during the day session. Meal is $3 to $4 higher and oil is 20 to 30 points lower. South American harvest pressure from South America along with good yield expectations has limited upside and should continue to do so. Harvest in Brazil should make good progress this week, while the ports will have a bit of a backlog to clear up. Basis has generally been soft to start the month as well with end-users shifting to the May contract. On the May soybean chart support is the February $8.52 three-month low with resistance at the $8.72 20-day moving average. WHEAT Wheat trade is 3 to 6 cents higher at midday with trade finding some buying this morning on warmer and drier weather concerns along with profit taking vs. shorts. The dollar remains strong and export business remains quiet with the U.S. remaining at a significant cost disadvantage with Egypt securing Ukrainian and Romanian supplies today. The lower 2016 acreage number from the USDA last week is a sign the lower prices are discouraging production, but supply expectations remain abundant for the near future. On the May Kansas City chart the new low at $4.48 1/2 printed last week is support with the 10-day at $4.57 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.