DTN Midday Grain Comments 03/15 11:55

DTN Midday Grain Comments 03/15 11:55 Grains Trending Higher at Midday Wheat is the leader at midday with quiet action overall. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 50 points. The interest rate products are mostly higher. The dollar index is 20 points lower ahead of the Fed announcement. Energies are higher with crude up $0.78. Livestock trade is mixed with hogs lower and cattle higher. Precious metals are mixed with gold down $3. CORN Corn trade is 1 to 2 cents higher at midday with some light short profit taking after hitting fresh lows for the move yesterday. The December contract five-month low is just below $3.75; this area is viewed as support due to expectations it may lower planted acres. So the trade is talking about low risk reward to stay with shorts. Market bears argue though, if planting is under way and weather looking okay in 30 days from now we could start to price-in a trend line or slightly better yield. The weekly ethanol production report showed production 2.25% higher, and stocks unchanged with gasoline demand down .15%. Ethanol futures are edging higher at midday. Corn basis is expected to remain fairly steady this week with warmer weather coming to move field work along. On the May chart support nearby support is or fresh two-month low then the $3.52 late December low. Resistance is at the $3.66 100-day then the $3.70 200-day. SOYBEANS Soybean trade is flat to 2 cents higher at midday with early gains fading during the day. Noted continued harvest pressure and limited fresh news is keeping the bears in control. Meal is $.50 to $1.50 higher, and oil narrowly mixed. South America looks to continue normal progress in the near term. Crush margins will need to improve to drive basis improvement as the export program slows seasonally giving a window of some fundamental negative news this month coupled with the slightly higher than expected numbers from the USDA last Thursday. On the May soybean chart support is at the $9.92 low printed on Tuesday, resistance is at the 10-day and lowest major moving average at $10.18. WHEAT Wheat trade is 5 to 8 cents higher at midday with trade looking to build a reversal after holding the low end of the range yesterday. The dollar is down solidly this morning, and has been trending lower, with the actions of the Fed potentially driving bigger changes this week. The extended forecast is expected to bring rain to the west, while the near term remains dry, and the warmer than normal temperatures look to moderate. The cold air to the east has raised some concerns for the soft winter wheat. The trade should be watching for changes in the rain outlooks this week and next as an item to direct trade. On the May Kansas City contract support we are back above the 100-day at $4.43, with resistance the 200-day at $4.57. 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.