DTN Midday Grain Comments 03/22 11:41

DTN Midday Grain Comments 03/22 11:41 Mixed Trade in Grains at Midday Wheat is mixed with corn and beans lightly lower 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 45 points. The interest rate products are higher. The dollar index is 8 points lower. Energies are lower with crude down $0.40. Livestock trade is mixed with cattle sharply higher and hogs lightly lower. Precious metals are mixed with gold up $1. CORN Corn trade is 2 cents lower in quiet midday trade, but we are at fresh two-month lows here at midday so additional long liquidation is possible. The weekly EIA report had stocks 0.75% lower with production 0.1% lower with 0.58% reduction in gas demand. Ethanol futures are a penny higher so with corn lower this is a positive move in board margins at midday. This may limit downside in corn along with the firm cattle trade. Fear of losing corn acres should also continue to limit downside, albeit it is not stopping us from moving lower. On the May chart support nearby support is at the $3.52 late December low. Resistance is the 10-day at $3.63 1/2. SOYBEANS Soybean trade is 3 to 5 cents lower at midday is slow trade with both nearby May and new crop November contracts trading just $10 but not accelerating to the downside. Meal is $1 lower and May soybean oil is down 35 points. Limited weather issues to talk about and with crush margins needing some improvement there is insufficient supportive news to take beans higher here. The strength in the Real has supported US export competitiveness which should limit near term downside despite rising production estimates from Brazil with some private sources up to 111 million metric tons. On the May soybean chart support is at the $9.92 low printed on last week, resistance is at the 10-day and lowest major moving average at $10.02. Our low this morning has been within 2 cents of support; the trade expects sizeable sell stops below the $9.92 4-month low and below the $9.90 level. WHEAT Wheat trade is mixed at midday in slow trade, the daily ranges have only been 5-7 cents on most contracts. Minneapolis is 2 cents higher here and the winter wheat contracts 2 cents lower. New lows for the move, and new 2-month lower were made on Kansas City trade but follow-through selling has been limited here as of midday. The recent warmer weather has stressed the crop on the plains but concerns are limited at the moment with the rains expected to limit damage. The dollar remains below the 100 mark on the index which appears to be limiting downside. The protein spreads are again favoring Minneapolis; Minneapolis has gained over 30 cents on Kansas City this month with the spread getting near the most inverse over Kansas City in a month but still around 20 cents from the high in the spread reached approximately 3 months ago. On the May Kansas City contract support is the daily low at $4.33 1/2, with resistance the 100-day at $4.44. 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.