DTN Midday Grain Comments 03/04 11:12

DTN Midday Grain Comments 03/04 11:12 Grains Mixed at Midday Corn is 3 to 4 cents higher, soybeans are 3 to 5 cents higher, and wheat is 4 to 7 cents lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer with the Dow up 530 in very active trade. The dollar index is 35 higher. Interest rate products are weaker. Energies are flat with crude unchanged. Livestock trade is higher. Precious metals are mixed with gold down $1.60. CORN Corn trade is 3 to 4 cents higher at midday with trade trying to consolidate the early-week gains with another spark likely to needed to push trade higher as we are back the $3.80 area we spent February at, with spread trade continuing to firm. Ethanol margins continue to see pressure with production jumping 25,000 barrels per day, with stocks to a record level up 246,000 barrels, which pushed ethanol futures lower again today. Corn basis might see some light pressure to start the week if futures strength can hold with steady action so far. On the May contract, support is the lower Bollinger Band at $3.69, and resistance the 20-day at $3.81, which we are above at midday. SOYBEANS Soybean trade is 3 to 5 cents higher at midday with trade still struggling to sustain enough buying to move away from the $9.00 area. Meal is flat to $1.00 higher and oil is 50 to 60 points higher. South America should see continued harvest progress as they try to catch back up to the average pace with little changes this week except for the hike to Argentina export taxes. The Brazilian real remains very cheap as well hurting U.S. export competitiveness, with the dollar finding support despite the Fed rate cut. New-crop soybeans will need to gain vs. corn to provide an acreage incentive ahead of planting in the U.S. with positive action to start the week, but not enough to change the conversation at this point. The May soybean chart support is the the 20-day at $8.98, which we moved above yesterday, with the upper Bollinger band at $9.10 the next round up. WHEAT Wheat trade is 3 to 7 cents lower with trade struggling to sustain buying with the stronger dollar and little fresh wheat specific news. Weather threats for the plains remain limited with mostly warmer short term weather after the recent rain and snow with more wheat likely exciting dormancy. Kansas City is at a 66-cent discount to Chicago on the May after wider trade yesterday, while Minneapolis is plus 9 vs. the Chicago May as it tries to reestablish a premium. World export business has been quieter in recent days. The May Kansas City chart support is the lower Bollinger band at $4.47, with resistance the 20-day at $4.70. 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 (AG) Copyright 2020 DTN/The Progressive Farmer. All rights reserved.