DTN Midday Grain Comments 03/08 11:27

DTN Midday Grain Comments 03/08 11:27 All Grains Lower at Midday Trade is mildly lower at midday in slow trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 30 points. The interest rate products are lower. The dollar index is 28 points higher. Energies are mixed with crude down 0.90. Livestock trade is mostly higher. Precious metals are lower with gold down 7.70. CORN Corn trade is 2 to 4 cents lower in quiet midday trade as we continue to grind along within the recent range. South America does not look to provide additional support in the near term with planting on going for double crop. Early fieldwork in the south should continue with planting in the Delta states. The weekly ethanol production report showed production down 1.16% on the week, with stocks down 1.02% with gasoline demand up 6.7%. The March WASDE report could show bigger ethanol use, with limited adjustments expected to South American production and world numbers. Basis is expected to remain soft with the ongoing weather related rail issues to the West Coast. On the May contract, support is the 50 to 200-day moving average at $3.71, with the 10-day and 20-day at $3.75-$3.77 as resistance. SOYBEANS Soybean trade is 2 to 4 cents lower at midday with trade trying to hold the lower end of the range with ongoing harvest pressure from Brazil. Meal is $1 to $2 lower, and oil is flat to 10 higher. 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 U.S., with soybeans gaining slightly this morning. The Monthly WASDE report is expected to show increased South American production, but strong demand should keep carryouts fairly level. On the May soybean chart, the 200-day moving average at $10.20 is support, and it held overnight, while resistance is the 10-day at $10.31. WHEAT Wheat trade is 3 to 8 cents lower at midday with trade seeing some pressure as the wind slows and the temperatures ease on the western plains. The warm snap looks to fade going into the weekend with cold air coming into the northern part of the belt, but the warmer and drier weather should continue for much of the belt in the extended forecast, which will help to keep the markets volatile. The dollar has pushed back over the 102 index 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 KC contract support is at the $4.70 10- and 20-day moving averages, but we have faded 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.