DTN Midday Grain Comments 03/07 11:10

DTN Midday Grain Comments 03/07 11:10 All Grains Lower at Midday Soybeans trade leads grains lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 30 points. The interest rate products are lower. The dollar index is 11 points higher. Energies are mixed with crude up 0.10. Livestock trade is mostly lower. Precious metals are lower with gold down 7.30. CORN Corn trade is 4 to 6 cents lower at midday with generally weakness and a lack of fresh bullish news. Excessive rains in South America should help limit downside this week but looks like a non-issue at the moment with second crop corn planting going in. Early fieldwork in the south should continue with planting in the Delta states. Ethanol margins will remain poor but there is some speculation the USDA could raise the ethanol usage number on the monthly report this Thursday. Ethanol futures are a shade lower this morning. Basis is expected to remain soft with the ongoing weather related rail issues to the west coast. On the May contract support was at the $3.76-3.79 area where we find the 10-day and 20-day moving average, so support now is at the 200-day at $3.71 1/2. The 50-day is right below there at $3.71. SOYBEANS Soybean trade is 10 to 14 cents lower at midday with South American harvest pressure carrying the day so far. Meal is $3 to $4 lower, and oil is 35 to 45 lower. The Brazilian harvest should continue to make progress with some weather disruptions as it closes in on the halfway point. Soybean basis should remain flat with crush margins needing improvement, and exports slowing seasonally. Trade will be watching the spread vs. corn closer as we get closer to planting season in the US, with spreads steady this morning. On the May soybean chart support was the 10-day at $10.34 but we washed through it this morning, with resistance the 50-day at $10.42. The lowest May contract moving average is the 200-day at $10.20; this will be an important support level this week if the USDA provides now fresh supportive news it may be hard to hold at support. WHEAT Wheat trade is 2 to 8 cents lower at midday with the market continuing to hold the upper end of the range. Warm weather should continue to be a concern with the western plains remaining drier, plus high winds taking moisture and causing fire issues in western plains. Cold potentially could return at the end of the week, dropping into northwest Kansas but recent runs have been warmer. The dollar remains range bound this morning. The winter wheat should continue to gain versus 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 was at the $4.69 10- and 20-day moving averages but we are just below there at midday. The 200-day at 4.59 is the next level of support. 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.