DTN Midday Grain Comments 03/09 11:00

DTN Midday Grain Comments 03/09 11:00 Grains Mixed at Midday Trade is narrowly mixed at midday ahead of the report. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 9 points. The interest rate products are lower. The dollar index is 2 points lower. Energies are mixed with crude down 1.15. Livestock trade is mostly higher. Precious metals are lower with gold down 7.00. CORN Corn trade is steady at midday after trading to a seven-day low; we are testing chart support levels. South America does not look to provide additional support in the near term with planting on going for double crop corn. Early fieldwork in the southern U.S. should continue with planting in the Delta states. Ethanol margins are seeing renewed pressure from the crude slide despite positive seasonal outlook, but ethanol futures have edged slightly higher this morning. The March WASDE report is expected to show the carryout around 2.32 billion bushels with South American production at 88 million metric tons for Brazil, and 36.4 for Argentina, up slightly from last month. World stocks are expected to be at 219 million metric tons, up slightly from last month. CONAB pegged Brazilian corn production at 89 million metric tons, up slightly from last month. The weekly export sales were OK at 741,100 metric tons of old crop, and 93,000 of new but it appears that the market likes numbers higher 1 million tons. On the May contract, support is at the 200-day moving average at $3.71, with the 10-day and 20-day at $3.75-$3.77 nearby resistance. SOYBEANS Soybean trade is 3 to 5 cents lower at midday with trade testing support again as we approach the release of the USDA monthly numbers at 11. Meal is flat to $1 lower and oil is 20 to 30 points lower. The Brazilian harvest should continue to make progress with some weather disruptions as it passes 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 corn gaining this morning. The Monthly WASDE report is expected to show carryout at 414 million bushels, down slightly, with Brazilian production at 106.4 million metric tons, up 2.4 from last month, and Argentina at 55.3 million metric tons, down slightly from last month. World stocks are expected to be at 81.7 million metric tons, up 1.3 from last month. CONAB pegged production at 107.6 million metric tons, up from 105.5 last month. Weekly export sales were ok at 485,500 metric tons of old crop, 29,600 of new crop, 301,900 of meal, and 8,400 of oil. On the May soybean chart, the 200-day moving average at $10.20 was support coming into the day with $10.00 below that, while resistance is the 10-day at $10.31. WHEAT Wheat trade is flat to 5 cents higher at midday. Weather will remain a concern with a cold snap ahead of a return to warm and dry weather after that. The dollar has pushed back over the 102 index and is holding that area at midday. 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. The WASDE report is expected to show carryout at 1.135 billion bushels, down slightly, and world stocks at 249 million metric tons, up slightly. The weekly export sales were neutral to negative at 391,600 metric tons of old crop, and 40,000 of new. On the May Kansas City contract support is at the 200-day at 4.59. Resistance is the 10---day and 20-day at $4.69-$4.70. 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.