DTN Midday Grain Comments 03/09 11:33

DTN Midday Grain Comments 03/09 11:33 Grains Lower at Midday Soybeans and wheat are sharply lower at midday, with corn slightly lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer at midday with the Dow futures up 275. The interest rate products are higher. The dollar index is 15 points lower. Energies are higher with crude up 1.50. Livestock trade is mixed. Precious metals are higher with gold up $1.00. CORN Corn trade is 1 to 3 cents lower overnight with trade backing off slightly from the upper end of the range with pressure from the weaker soybeans and wheat trade. Ethanol margins remain positive with spring driving season rapidly approaching, with futures consolidating over the $1.50 area this week. Double-crop areas in Brazil look to build some moisture in the coming days; will keep planting behind normal pace. Argentine weather remains tough which remains one of the most talked about subjects preventing selling as the end of the growing season draws near with rains in focus for next week. On the WASDE report, domestic carryout was 2.127 billion bushels vs. expected of 2.312 billion bushels, world stocks at 199.17 vs. 199.36 million metric tons expected, with Argentina production at 36.00 million metric tons, and Brazil at 94.5. Exports continued to show up on the daily wire with 260,000 metric tons of corn sold to unknown. On the May chart support is at the 10-day at $3.85 that, with resistance becoming the $3.93 3/4 high scored yesterday. SOYBEANS Soybean trade is 12 to 18 cents lower at midday with bull spreads continuing to unwind in post report action with rain in the forecast for Argentina. Meal is 4.00 to 5.00 lower and oil is 30 to 40 points lower. The weather pattern is bringing some rain to parts of Argentina with Brazil remaining mostly the same. The erosion of meal values is causing crush margins to retreat from the highs, with May meal about $25 off the highs. On the report, domestic carryout was 555 million bushels vs. 530 expected, world stocks 94.40 million metric tons vs. 95.31 million metric tons expected, with Brazil production at 113.0 vs. 113.82 expected, and Argentina at 47.0 million vs. 48.36 million metric tons expected. The daily wire had sales to China of 183,000 metric tons, and 205,000 metric tons to unknown. On the May contract, support is the 20-day moving average at $10.46 which we are testing at midday with the 50-day at 10.10 below that, with resistance the 10-day at 10.62 which we slumped below overnight. WHEAT Wheat trade is 7 to 14 cents lower at midday with long liquidation picking up after a lackluster report, and little fresh bullish news. Plains weather continues to be stressful with wind taxing the already short moisture conditions, but some improvement may be possible in the extended forecast. The dollar index remains in the 90 range on the index with a reversing yesterday. Black Sea origin prices have drifted lower this week, solidifying their advantage. The WASDE report had carryout at 1.034 billion bushels vs. 1.015 billion bushels expected domestically, and world stocks at 268.93 million metric tons vs. 265.63 expected. On the May Kansas City wheat support is at the 10-day at $5.28, which we are below at midday, then the 20-day at 5.07. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.