DTN Midday Grain Comments 02/25 11:32

DTN Midday Grain Comments 02/25 11:32 Grains Mixed at Midday Row crops move sideways, with spring wheat the midday leader. By David Fiala DTN Contributing Analyst General Comments Grains Mixed at Midday Early gains fade, with wheat washing out again. The U.S. stock market indices are firmer with the Dow 180 points higher. The interest rate products are firmer. The dollar index is 2 points lower. Energies are sharply lower, with crude down 1.90. Livestock trade is lower. Precious metals are weaker with gold down $2.50. CORN Corn trade is 2 to 3 cents lower at midday with spillover pressure from wheat erasing early gains. South America progress will remain on track for corn in the near term. The switch to spring blending will support ethanol in the short term, even with the sharp pull back in crude this morning, with ethanol futures up another penny. Corn basis should firm again with more weather disruptions with aggressive bids by some end-users with more focus on exporters with trade. The weekly export inspections were softer at 751,268 metric tons. On the daily wire, a sale of 279,400 metric tons was announced to Mexico with the bulk being new crop. On the March chart trade has support at the recent $3.68 1/2 low, the lower Bollinger Band at $3.70 7/8, with more notable chart resistance clustered at $3.76-$3.78 which we have been tested but failed to move through the last three days. SOYBEANS Soybean trade gapped higher on the open, with trade progress and further Chinese purchase commitments coming out late on Friday with midday trade 4 to 5 cents higher, 6-7 off the highs. Meal is $1 to $2 higher and oil is flat to 10 points lower. South America weather should maintain the recent pattern in the coming days with Brazil harvest moving along and drier weather in Argentina with pod fill on going with some rain expected later this week. Crush margins remain strong. Trade talks are expected to continue with a final summit in late March with the next 10 million metric ton commitment noted. Export inspections were strong at 1.307 million metric tons. On the March chart support is now the moving averages clustered at $9.09-9.14 which we gapped above overnight, with resistance the $9.21 overnight highs. WHEAT Wheat trade is 7 to 17 cents lower overnight with early gains fading with Chicago trade seeing the most pressure as spreads unwind this morning and sellers firmly in control after the better action at the end of last week. Trade will be closely focused on export business in the near term after the U.S. disappointed on tenders last week, even as the catch-up number was solid. The dollar has remained flat after Fed guidance. Cold weather is expected to keep some stress on the plains in the near term with winter wanting to hang around. Weekly export inspections were better than expected at 693,964 metric tons. On the March Kansas City chart, support is low at $4.43 1/4 with resistance the 10-day at $4.72, with trade holding oversold conditions. 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 him on Twitter @davidfiala (BAS) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.