DTN Midday Grain Comments 03/07 11:17

DTN Midday Grain Comments 03/07 11:17 All Grains Higher at Midday Trade is higher across the board at midday with light outside market support and follow-through buying. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow up 30 points. The interest rate products are higher. The dollar index has been mixed. Energies are stronger with crude up 1.21. Livestock trade is mostly lower. Precious metals are mixed with gold down $4. CORN Corn trade is 2 to 3 cents higher at midday with trade gapping slightly higher overnight amid broader commodity support but then slow since Profit taking of longer term short fund positions is talked about. Crude is up $1.50 at midday which is providing corn with support. Corn basis has been firmer in recent days with improved export demand and solid ethanol grind. Planting progress on second crop corn should continue in Brazil with improved moisture this week. First crop will continue to move along with some early harvest in some areas and increasing maturity in others. Ethanol margins will continue to be supported by the firming energy complex with ethanol futures higher along with unleaded this morning. The weekly export inspections were solid at 953,062 metric tons. On the May chart support is at the contract low of $3.54 1/4 with resistance at the 20-day at $3.63. SOYBEANS Soybean trade is 6 to 8 cents higher with trade gapping slightly higher overnight with profit taking on longer term short positions and improved demand. Meal is $2 to $3 higher, and oil is 15 to 25 points higher. South American harvest should continue to move along with increasing shipments as the port backlog gets worked on. Weather shouldn't be a near term issue in South America. Basis should be stable to firmer this week, but increasing farmer movement will limit upside. The weekly export inspections were good at 1.067 million metric tons. On the May soybean chart support is the 50-day moving average at $8.74, and the recent highs at $8.86 will be resistance for now. WHEAT Wheat trade is 5 to 9 cents higher across the three contracts at midday with trade continuing to find good support from the warmer and drier weather across the Southern Plains. Spillover support from the row crops is noted as well. The dollar remains strong and export business remains quiet with the US remaining at a significant cost disadvantage which should limit rallies. The weekly export inspections were improved at 443,190 metric tons. On the May KC chart the 50-day moving average at $4.70 will be support with the recent high at $4.87 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.