DTN Midday Grain Comments 03/04 11:34

DTN Midday Grain Comments 03/04 11:34 Grains Higher at Midday Mostly higher trade at midday with a fade from the early highs. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 120 points lower. The interest rate products are weaker. The dollar index is 20 points higher. Energies are firmer, with crude up 0.80. Livestock trade is mixed. Precious metals are weaker with gold down 11.00. CORN Corn trade is 2 cents higher at midday with trade building on Friday's reversal along with more talk a trade deal is close with momentum slowing during the day session. South America crop progress will remain on track for corn with no weather concerns illustrated in the market with double-crop planting on the home stretch. Ethanol margins should improve with better spring demand and cheaper corn in recent days with ethanol futures slightly higher today, retesting the recent highs. Corn basis will be supported by ongoing weather issues. Early planting is going in the south as well with weather concerns likely to build in the north into March with flooding in the mid-South causing problems now. The weekly export inspection was a bit disappointing at 865,617 metric tons. The USDA also announced 100,500 metric tons sold to Colombia. On the May chart support is at the $3.66 3/4 low scored Friday, followed by the $3.63 1/4 contract low. Resistance is at the $3.77 3/4 10-day moving average which was challenged. SOYBEANS Soybean trade is 6 to 8 cents higher at midday with trade optimism helping to lift action to start the week again but trade unable to clear bigger resistance so far. Meal is $3.50 to $4.50 higher and oil is 5 to 15 points lower. South America weather should maintain the recent pattern in the coming days with Brazil harvest moving along and stable weather in Argentina. Crush margins remain strong with meal holding $310 a ton on the move today. Trade progress is believed to us fairly close to a deal coming soon. The recent China commitments have yet to be reported on the daily wire. The weekly export inspections were disappointing at 843,925 metric tons. On the May chart support is at the $9.00 low printed this Friday with resistance at the $9.20 200-day moving averages which we tested before fading today. Wheat Wheat trade is mixed at midday with Minneapolis 5 cents lower to Kansas City 1 to 2 cents higher. Kansas City trade has continued to narrow the discount to the other contracts the last few trading days, with Kansas City/Chicago down to a dime. Export news has been quieter lately with fresh tenders expected soon to gauge activity by major importers. The dollar has come back to 96.5 on the index. 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. Export inspections were unspectacular at 440,314 metric tons. On the May Kansas City chart support is low at $4.32 1/2 fresh low with resistance at the 10-day at $4.53. 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.