DTN Midday Grain Comments 03/05 11:19

DTN Midday Grain Comments 03/05 11:19 Grains Mixed at Midday Corn is gaining on beans due to weather concerns. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow 6 points higher. The interest rate products are firmer. The dollar index is 25 points higher. Energies are mixed, with crude up 0.10. Livestock trade is mixed. Precious metals are mixed with gold down 1.70. CORN Corn trade is fractionally higher at midday with light two-sided trade so far, with support from wheat, and some corn buying versus soybean selling pressure due to weather. 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 pulling back slightly from recent highs overnight, down a penny at midday. 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 and an active month expected moisture wise. 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 1/4 10-day moving average which we remain just below. SOYBEANS Soybean trade is 4 to 6 cents lower with trade remaining in the middle part of the recent range and struggling to sustain buying with little fresh demand or supply news to move the market. Meal is $1 to $2 lower and bean 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 normal progress in Argentina. Crush margins remain strong with meal hanging around $310 a ton. Trade progress is believed to be fairly close to a deal closing soon but specifics remain sparse. China also cut growth estimates helped to pressure the market. The recent China commitments have yet to be reported on the daily wire as well. On the May chart, support is at the $9.00 low printed last Friday with resistance at the $9.19 200-day moving averages, which we tested before fading today. WHEAT Wheat trade is 2 to 3 cents higher at midday with the choppy trade ongoing with trade still working to ease oversold conditions. Kansas City trade has continued to narrow the discount to the other contracts the last few trading days, with Kansas City/Chicago down to 12 cents. Export news has been quieter lately with fresh tenders expected soon to gauge activity by major importers. The dollar has come back to 96.9 on the index. Cold weather is expected to keep some stress on the Plains in the near term with good snow cover for the most part. On the May Kansas City chart, support is low at $4.32 1/2 fresh low with resistance at the 10-day at $4.50. 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.