DTN Midday Grain Comments 03/05 10:58

DTN Midday Grain Comments 03/05 10:58 Grains Trending Lower at Midday Corn is 3 to 4 cents lower, soybeans are 6 to 8 cents lower, and wheat is 4 cents lower to 3 cents higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow down 530 in very active trade. The dollar index is 35 lower. Interest rate products are weaker. Energies are flat with crude unchanged. Livestock trade is lower. Precious metals are mixed with gold up $17.00. CORN Corn trade is 3 to 4 cents lower at midday with broad weakness in most markets weighing on trade along with weaker spread trade. Ethanol margins continue to see pressure with maintenance season expected to slow production short term, with burdensome stocks, and sluggish gasoline demand. Corn basis might see some light pressure to start the week if futures strength can hold with steady action so far. Weekly export sales were a little softer at 769,200 metric tons. On the May contract support is the 20-day at $3.81 which we are testing at midday, with resistance the upper Bollinger Band at $3.93 1/4. SOYBEANS Soybean trade is 7 to 9 cents lower at midday with trade testing $9.00 at midday with broad weakness so far. Meal is $3.00 to $4.00 lower, and oil is 20 to 30 points lower. South America has seen little change this week with harvest mostly moving along. The Brazilian ral remains very cheap as well hurting U.S. export competitiveness, with the dollar testing the lows again this a.m. 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. Weekly export sales were soft at 345,000 metric tons, meal was 316,000 metric tons, and oil was 43,500 metric tons. The May soybean chart support is the 20-day at $8.98, which we moved above yesterday, with the upper Bollinger Band at $9.11 the next round up. WHEAT Wheat trade is 4 cents lower to 3 cents higher with buyers favoring Chicago trade this morning. Weather threats for the Plains remain limited with mostly warmer short-term weather after the recent rain and snow with more wheat likely exiting dormancy. Kansas City is at a 71-cent discount to Chicago on the May after narrower 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 with weekly export sales showing more life this week at 542,200 metric tons. The May Kansas City chart support is the lower Bollinger Band at $4.44, with resistance the 20-day at $4.68. 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.