DTN Midday Grain Comments 03/12 11:04

DTN Midday Grain Comments 03/12 11:04 All Grains Lower at Midday Corn is 8 to 9 cents lower, soybeans are 16 to 18 cents lower, and wheat is 6 to 12 cents lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is sharply lower with the Dow down 2000 after hitting the circuit breakers early. The dollar index is 135 higher. Interest rate products are firmer. Energies are weaker with crude down $1.55. Livestock trade is limit lower. Precious metals are sharply weaker with gold down $67.00. CORN Corn trade is 7 to 9 cents lower with broad outside market weakness spilling over again. Ethanol margins remain poor, with ethanol holding a stout premium with driving demand expected to remain soft in the short term. Weekly export sales were strong at 1.47 million metric tons. Corn basis has remained steady. Rains have worked across much of the Belt short term to slow early field work. 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 16 to 19 cents lower with trade scoring new lows again amid the broader demand concerns despite the active sales this week along with the Brazilian ral cratering to new lows. Meal is 1.50 to 2.50 lower and oil 95 to 105 lower. South America has seen little change this week with harvest mostly moving along, and more rains expected the next two weeks with Brazilian farmers potential looking towards slowing sales as an inflation hedge. 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. Weekly export sales were soft at 302,800 metric tons of beans, 171,000 of meal, and 24,700 of oil with the daily wire sales showing up the next week. The May soybean chart support is the fresh low at $8.64, with resistance the 20-day at $8.93. WHEAT Wheat trade is 6 to 12 cents lower at midday with the broad selling pressure continuing to weigh on the market. 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 75-cent discount to Chicago on the May with choppy trade continuing, while Minneapolis is plus 3 to the Chicago. World export business has been quieter in recent days with Russian stocks still on the low side but new tenders are being issued again with weekly sales remaining range bound at 452,300 metric tons of old crop, and 28,500 of new crop. The May Kansas City chart support is the lower Bollinger Band at $4.25, 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.