DTN Midday Grain Comments 03/21 12:21

DTN Midday Grain Comments 03/21 12:21 All Grains 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 futures up 20 points. The interest rate products are higher. The dollar index is 15 higher. Energies are higher with crude up 0.75. Livestock trade is lower. Precious metals are mixed with gold down $10. CORN Corn trade is 1 to 2 cents higher at midday with some two sided trade early on. Ethanol margins have benefited from the rally the past 6 weeks, but we will have unleaded prices too close to ethanol to encourage more ethanol usage with unleaded gaining a little premium relative to ethanol this morning. Corn planting progress in the Mississippi Delta will remain slow in the near term, and the overall forecast has went cooler which should slow early progress. Basis is likely to start the week sideways to soft, with increased farmer movement, and export inspections were strong at 1.013 million metric tons. On the May chart, support is at the 50-day moving average at $3.66 1/2 then the 20-day at $3.63. Resistance is at the $3.72 weekly high then the 100---day at $3.76. Trade will be closed Friday for Good Friday. SOYBEANS Soybean trade is 3 to 5 cents higher at midday with trade bouncing off early weakness during the day session. Meal is $2 to $3 higher and oil is 10 to 20 points higher. South American harvest should continue to move along this week with additional protests expected in Brazil which could induce some short covering. The weekly export inspections were softer at 575,087 metric tons, and the crush margins will have to be watched with oil turning softer to start the week. May beans found resistance around the 200-day last week, so expect big buy stops above this $904 1/2 level. On the May soybean chart support is the 10-day moving average at $8.92, which we tested overnight. WHEAT Wheat trade is 2 to 8 cents higher at midday with freezing temperatures on the Southern Plains helping the Kansas City wheat to find buying. Trade remains well off the recent highs, and will need to hold the small gap put in on the overnight trade. With temperatures moving into the teens in Kansas where some wheat had jointed, and a sharp increase in temps expected for early in the week, trade will be looking for confirmation of damages that might further crimp U.S. production. The weekly condition report will likely add limited insight. We need a pick-up in our export business to justify a further fundamental rally. Weekly export inspections showed some life at 467,658 metric tons. Chart rallies should remain a common place with the market historically low. On the May Kansas City chart we jumped back over the 50-day moving average at 4.71 overnight, and will need to hold that with the 10-day at $4.79 the next round higher. 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.