DTN Midday Grain Comments 02/28 11:15

DTN Midday Grain Comments 02/28 11:15 Corn, Beans Lower at Midday, Wheat Mixed Wheat trade leads at midday with row crops working lower again. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 25 points lower. The interest rate products are firmer. The dollar index is 6 points lower. Energies are mixed, with crude up 0.20. Livestock trade is mixed. Precious metals are weaker with gold down 4.50. CORN Corn trade is 2 to 3 cents lower at midday with trade scoring new lows with selling pushing us to more oversold conditions. South America crop progress will remain on track for corn with no weather concerns illustrated in the market. Ethanol margins should improve with better spring demand and cheaper corn in the near term with ethanol futures edging slightly lower this morning. Corn basis should remain steady to firmer with the roll as well. Export sales were good at 1.24 million metric tons, with sales on the daily wire to Mexico and South Korea of 168,000 metric tons and 133,000 metric tons. Early planting is going in the south as well with weather concerns likely to build in the north into March. On the May chart support is at the $3.71 low scored today, followed by the $3.63 1/4 contract low. Resistance is at the $3.79 1/4 10-day moving average. SOYBEANS Soybean trade is 5 to 6 cents lower at midday with trade back to the lower end of the range on little fresh news. Meal is $2.00 to $3.00 lower and oil is 5 to 15 points higher. 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 with meal still holding $300 a ton. Trade will watch for further trade developments with mixed comments yesterday. The weekly export sales were good at 2.20 million metric tons of beans, 113,600 of meal, and 10,600 of oil. On the May chart support is at the $9.07 low printed last week with resistance at the $9.22 200-day and 10-day moving averages. WHEAT Wheat trade is 3 cents lower to 5 higher in quiet mixed trade at midday with market working to ease oversold conditions and the higher protein wheats leading. Trade will be closely focused on export business in the near term with more talk of renewed Russian movement and most movement around $225-230 a metric ton. Weekly export sales expectations were decent at 476,600 metric tons of old, and 61,000 of new. The dollar has remained flat to lower in the past week with flat trade overnight. Cold weather is expected to keep some stress on the plains in the near term with winter wanting to hang around with good moisture in the near term. On the May Kansas City chart, support is low at $4.43 fresh low with resistance at the 10-day at $4.61. 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.