DTN Midday Grain Comments 03/01 11:38

DTN Midday Grain Comments 03/01 11:38 All Grains Higher at Midday Grain trade is holding onto modest early gains at midday; trade is slow. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are sharply higher with the Dow futures up 260 points. The interest rate products are lower. The dollar index is 50 points higher. Energies are mixed with crude down 0.05. Livestock trade is mostly higher. Precious metals are mixed with gold down 8.30. CORN Corn trade is 4 to 6 cents higher at midday with trade continuing to find some light buying after the positive finish on Tuesday. We have held up around a nickel higher for nearly 2 hours. Double crop planting in Brazil will continue to expand in coming days as the soybean harvest opens more acres up with rains slowing progress in some areas. The warmer weather forecasted should expand planting in the south. The weekly EIA numbers showed ethanol production unchanged, stocks up 5.64%, and gasoline demand was .3% higher on the week which remains well below year ago levels. Ethanol futures are steady to fractionally higher here at midday. On the May contract, trade is back above the highest moving averages at $3.75-3.76 levels of the 10-day and 20-day moving average with the recent high at $3.88 the next level of resistance. SOYBEANS Soybean trade is 3 to 5 cents higher at midday with trade finding further support on demand remaining strong and some mild lingering issues in South America. Meal is $1 to $2 higher, and oil 30 to 40 points higher. The Brazilian harvest should move past the 1/3 point this week and production expectations have not been slipping, with some mild near term weather issues. Soybean basis should remain flat with crush margins needing to improve to provoke sustained improvement. The renewable fuels changes for biodiesel have the potential for better access and better producer tax treatment. On the May soybean chart support is at the $10.42 50-day, with resistance the 20-day at $10.47. WHEAT Wheat trade is 2 to 8 cents higher across the three contracts this morning with trade following row crops higher. Ample supply continues to limit upside despite some growing weather concerns with the western plains remaining warm and dry, while the crop grows early. The dollar is sharply higher today, but remains below 102 on the index and has struggled to hold gains. The winter wheat should continue to gain vs. the spring wheat with protein issues moving to the back burner for now, but it will remain a longer term issue. On the May Kansas City contract support is at the $4.65 20-day. Resistance is the 10-day at $4.69 which we are testing this morning. 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.