DTN Midday Grain Comments 03/11 10:55

DTN Midday Grain Comments 03/11 10:55 Corn, Wheat Lower at Midday Corn is 3 to 4 cents lower, soybeans are 2 to 3 cents higher, and wheat is 3 to 7 cents lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is sharply lower with the Dow down 1000 after yesterday's rally evaporated. The dollar index is flat. Interest rate products are weaker. Energies are weaker with crude down $1.22. Livestock trade is mixed. Precious metals are weaker with gold down $6.70. CORN Corn trade is 3 to 4 cents lower at midday with choppy trade continuing as we remain withing the range of the last couple weeks with grain news still on the back burner. On the report yesterday, carryout was left unchanged at 1.892 billion bushels with only minor revisions to world numbers. Ethanol margins remain poor, with ethanol holding a premium to unleaded with production down 35,000 barrels, and stocks down 630,000 barrels. 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 2 to 3 cents higher at midday with light buying continuing as trade tries to recover the early-week losses with better demand seen on the export wire this week with another sale of 194,000 metric tons to unknown. Meal is 1.00 to 2.00 higher, and oil is flat to 10 points higher. The report left domestic carryout unchanged at 425 million bushels, with world numbers edging slightly higher. 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 with a small rebound yesterday. The daily wire had the second 123,000 metric ton sale in a row to unknown. 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 $8.93. WHEAT Wheat trade is 3 to 7 cents lower at midday with trade settling into a short term range as well with spread trade pretty variable so far this week. The report left carryout unchanged at 940 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 70-cent discount to Chicago on the May after narrower trade yesterday, while Minneapolis is even 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 $4.32, 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.