DTN Midday Grain Comments 03/02 11:26

DTN Midday Grain Comments 03/02 11:26 All Grains Lower at Midday Grain trade is slow and modestly lower at midday led by soybeans. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 40 points. The interest rate products are lower. The dollar index is 240 points higher. Energies are mixed with crude down 0.80. Livestock trade is mixed. Precious metals are lower with gold down 10.90. CORN Corn trade is 1 to 3 cents lower in quiet trade at midday with trade looking to consolidate near the new multi-month highs. 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 U.S. Ethanol margins will remain under pressure in the near term, but better seasonal action is just around the corner, and futures are down slightly this morning. The weekly export sales were a little low at 692,400 metric tons of old crop. On the May contract, trade is back above the highest moving averages at $3.75-3.77 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 6 to 9 cents lower with light long profit taking and noted harvest pressure from South America. Meal is $2 to $3 lower, and oil 30 to 40 points higher. The Brazilian harvest should continue to make progress with some weather disruptions. Soybean basis should remain flat with crush margins needing to improve to provoke sustained improvement. The weekly export sales were ok for the season at 427,700 metric tons of old crop beans, 139,500 of meal, and 28,700 of oil. On the May soybean chart support is the 50-day at $10.42 which we are testing at midday, with resistance the 20-day at $10.47 which we slipped below overnight. WHEAT Wheat trade is flat to 4 cents lower in quiet midday trade with trade looking to consolidate the bounce from midweek. Ample supply should continue to limit upside despite some growing weather concerns with the western plains remaining warm and dry, while the crop grows early. The dollar has bounced back over 102 on the index this morning, making new recent highs. 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. The weekly export sales were mediocre at 353,200 metric tons of old crop, and 98,800 of new. On the May Kansas City contract support is at the $4.69 10-day. Resistance is the recent high at $4.82. 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.