DTN Midday Grain Comments 02/27 11:33

DTN Midday Grain Comments 02/27 11:33 All Grains Lower at Midday Grain trade is lower at midday in slow trade; traders fear chart selling. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 10 points. The interest rate products are lower. The dollar index is 35 points lower. Energies are higher with crude up 0.20. Livestock trade is mostly higher with cattle leading. Precious metals are mixed with gold up 5.50. CORN Corn trade is 3 cents lower at midday with light chart selling and limited fresh friendly news. Double-crop planting in Brazil will continue to expand in coming days as the soybean harvest opens more acres up with limited weather issues at the moment. Basis remains soft, but better bids should be coming in due to the board weakness. The weekly export inspections were good at 1.461 million metric tons. Now that we are past the outlook conference, trade will begin to look ahead to planting weather and price battles for acres. Support was at the $3.69 50-day moving average but we are below there at midday; so the 100-day and lowest major moving average at $3.64 is now key support for today and this week. SOYBEANS Soybean trade is 5 cents lower at midday with early gains fading with continued harvest pressure from Brazil. Meal is fractionally lower and bean oil is 20 to 30 points lower. Brazilian harvest should move past the 1/3 point this week and production expectations have not been slipping. Domestically demand numbers remain good and are limiting downside in the futures. Soybean basis should remain flat with crush margins needing to improve to provoke strength. The weekly export inspections were good for this time of year at 704,945 metric tons. On the May soybean chart support was at the $10.20 200-day which is the lowest major moving average. Here at midday we are just below this level which has traders thinking chart selling could pick up this afternoon. The $10.01 3-month low is now noted chart support with big stop orders potentially below $10. WHEAT Wheat trade is 4 to 7 lower at midday and we have been down double digits. Ample supply continues to trump light weather issues for now. The dollar continues to trade around 101 on the index, keeping us in the upper end of the range. The winter wheat should continue to gain vs. the spring wheat with protein issues moving to the back burner for now. Warmer weather will continue to dominate the western plains with limited near term moisture. The weekly export inspections were a bit better at 537,877 metric tons. On the May Kansas City contract support is at the $4.49 50-day. Resistance is the 20-day at $4.62. 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 (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.