DTN Midday Grain Comments 03/17 11:22

DTN Midday Grain Comments 03/17 11:22 Grains Mixed at Midday Trade is mixed in quiet trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 10 points. The interest rate products are higher. The dollar index is 5 points lower ahead of the Fed announcement. Energies are mixed with crude down $0.02. Livestock trade is mixed with hogs lower and cattle higher. Precious metals are higher with gold up $3. CORN Corn trade is narrowly mixed in quiet trade as we try to move through nearby resistance going into the weekend. After trading to fresh 2-month lows this week we have kept from going lower the past three sessions. That is positive, but we are only 6 cents from the low. The low is still within striking distance if long liquidation or some negative news would show up this afternoon. Ethanol margins remain stable in the near term but are not great. Corn basis is expected to remain fairly steady going into the weekend. South America does not have any major weather issues for corn in the near term. Trade has moderated the oversold conditions but due to the market being below all major moving average we still need to view the chart picture as negative. On the May chart support nearby support is $3.66, the fresh 2-month low, then the $3.52 late December low. Resistance is at the $3.66 3/4 100-day then the $3.69 1/2 200-day moving average. SOYBEANS Soybean trade is 3 to 5 cents lower at midday with trade trying to hold the lower end of the range going into the weekend. Meal is $1 to $2 lower and oil is 10 to 20 points higher. 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. Chinese crush margins have turned negative but Brazilian currency strength has supported export competitiveness. 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 $10.10. WHEAT Wheat trade is narrowly mixed in quiet midday trade with the dollar holding the lower end of the range, and rain still showing in the longer term forecast with the plains expected to stay dry for the next 7 days. Warmer temperatures could add additional stress to western Kansas in the near term. 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. Kansas City has been the leader this morning with protein spreads fairly stable. On the May Kansas City contract support we are back above the 100-day at $4.43, with resistance the 200-day at $4.56. 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.