DTN Midday Grain Comments 03/10 11:13

DTN Midday Grain Comments 03/10 11:13 Grains Trending Higher at Midday Corn is 3 to 4 cents higher, soybeans are 8 to 10 cents higher, and wheat is flat to 3 cents higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is mixed with the Dow down 80 after early strength evaporated. The dollar index is 85 higher. Interest rate products are firmer. Energies are firmer with crude up $1.70. Livestock trade is sharply lower. Precious metals are weaker with gold down $17.90. CORN Corn trade is 3 to 4 cents higher overnight with broader market strength this morning after the rough start to the week. On the report this a.m, domestic carryout is expected to be at 1.888 billion on an 1.798-1.942 billion-bushel range. 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 along with the sharp drop in unleaded values with ethanol holding a small premium to unleaded currently. Corn basis has remained steady. On the May contract support is the lower Bollinger Band at $3.67, with resistance the 20-day at $3.79. Soybeans Soybean trade is 7 to 10 cents higher at midday with trade erasing about half of the Monday losses amid the broader market strength this a.m. Meal is 2.50 to 3.50 higher, and oil is flat to 10 points lower. The report is expected to show 426 million bushels of carryout with a range of 410 to 450 bushels. South America has seen little change this week with harvest mostly moving along, and more rains expected the next two weeks with the real remaining record cheap vs. the dollar. New crop soybeans will need to gain vs. corn to provide an acreage incentive ahead of planting but everything remains in favor of bigger corn acres. The May soybean chart support is the fresh low at $8.67, with resistance the 20-day at $8.95. WHEAT Wheat trade is 1 cent lower to 3 cents higher at midday with trade finding light buying on spillover support from row crops this AM, despite the bounce in the dollar with early Kansas City strength fading again. The report is expected to show carryout at 944 million bushes on a range of 940 million to 965 million bushels. Weather threats for the Plains remain limited with cooler and wetter short-term weather after the warm weekend likely drew more out of dormancy. Kansas City is at a 73-cent discount to Chicago on the May after narrower trade yesterday, while Minneapolis is plus 10 vs. the Chicago May as it tries to reestablish a premium. World export business has been quieter in recent days with Russian stocks still on the low side but new tenders are being issued again. The May Kansas City chart support is the lower Bollinger Band at $4.40, with resistance the recent highs around $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 (AG) Copyright 2020 DTN/The Progressive Farmer. All rights reserved.