DTN Midday Grain Comments 03/06 11:00

DTN Midday Grain Comments 03/06 11:00 Grain, Soybean Futures Lower at Midday Corn futures are 4 to 6 cents lower, soybean futures are 4 to 5 cents lower, and wheat futures are 3 to 5 cents lower. By David Fiala DTN Contributing Analyst General Comments Corn futures are 4 to 6 cents lower, soybean futures are 4 to 5 cents lower, and wheat futures are 3 to 5 cents lower. The U.S. stock market is weaker with the Dow down 550 in very active trade. The dollar index is 90 lower. Interest rate products are weaker. Energies are sharply weaker with crude down 4.00. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold flat. CORN Corn futures are 4 to 6 cents lower at midday with broad market weakness returning pressure to the market along with the early week spread strength evaporating. Ethanol margins continue to see pressure with maintenance season expected to slow production short term, with burdensome stocks, and sluggish gasoline demand on travel concerns. Corn basis has remained steady. The export wire was active again with 234,668 metric tons (mt) to Japan. On the May contract support is the lower Bollinger Band at $3.69, with resistance the 20-day average at $3.80. SOYBEANS Soybean futures are 4 to 5 cents lower at midday with trade breaking back through the $9.00 area nearby. Meal is .50 to $1.50 higher, and oil is 75 to 85 points lower. South America has seen little change this week with harvest mostly moving along. The Brazilian real remains very cheap as well, hurting U.S. export competitiveness, even with the dollar scoring new lows again this morning. 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 have not been able to sustain it. The May soybean chart support is the lower Bollinger band at $8.85, with resistance the 20-day average at $8.98. WHEAT Wheat futures are 3 to 4 cents lower at midday with all classes seeing similar selling. 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. KC is at a 73-cent discount to Chicago on the May after narrower trade Thursday, while Minneapolis is plus 9 vs. the Chicago May as it tries to re-establish a premium with the delivery contract at a 14-cent discount. World export business has been quieter in recent days with Russian stocks still on the low side. The May KC chart support is the lower Bollinger band at $4.40, with resistance the 20-day at $4.66. 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.