DTN Midday Grain Comments 03/16 11:23

DTN Midday Grain Comments 03/16 11:23 Slow Grain Trade Mixed at Midday Trade is mostly flat to a few cents higher in slow midday trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 50 points. The interest rate products are lower. The dollar index is 35 points lower ahead of the Fed announcement. Energies are lower with crude down $0.20. Livestock trade is mixed with hogs lower and cattle higher. Precious metals are higher with gold up $30. CORN Corn trade is 1 to 2 cents higher at midday with light buying continuing as trade bounces off the lower end of the range tested early in the week. Ethanol futures have edged a bit higher this morning. Crude has bounced off the lows with more favorable inventory numbers this week, helping to support margins. Corn basis is expected to remain fairly steady this week with warmer weather coming to move field work along. South America doesn't have any major weather issues for corn in the near term. The weekly export sales were strong at 1.26 million metric tons of old crop, and 218,600 of new. On the May chart support nearby support is or fresh 2-month low then the $3.52 late December low. Resistance is at the $3.66 100-day which we are testing at midday then the $3.70 200-day. SOYBEANS Soybean trade is steady to a penny lower with the early gains failing yet again despite fresh export sales and a rising Brazilian real. Meal is flat and bean oil is flat to 5 points lower. NOPA soybean crush came in below expectations at 142.8 million bushels, off 2% year over year. 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. Chinese crush values are under pressure as well, but we did see 120,000 metric tons of old crop soybeans announced as sold to unknown. Weekly export sales were ok seasonally at 471,600 metric tons of old crop, 225,800 of new, 389,500 of meal, and -35,800 of oil. 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 $10.14. WHEAT Wheat trade is 1 to 3 cents higher at midday with trade trying to extend the recent rebound off the fresh lows scored early in the week. The sharply lower dollar should provide additional support if sustained. The extended forecast is expected to bring rain to the west, while the near term remains dry, and the higher than normal temperatures look to moderate. The cold air to the east has raised some concerns for the soft winter wheat but that should be exiting for the moment with some talk of 10-15% damaged. The trade should be watching for changes in the rain outlooks this week and next as an item to direct trade with the overnight run a shade drier. The weekly export sales were soft at 264,200 of old, and 74,200 of new with 120,000 of old crop sold to Algeria on the daily wire. 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.