DTN Midday Grain Comments 03/17 10:57

DTN Midday Grain Comments 03/17 10:57 Grains Mixed at Midday Corn is 5 to 7 cents lower, soybeans are 6 to 8 cents higher, and wheat is 3 to 8 cents higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer with the Dow up 500 points, which is off the lows. The dollar index is 166 points higher. Interest rate products are firmer. Energies are mixed. Livestock trade is sharply higher. Precious metals are mixed with gold up 53.00. CORN Corn trade is 6 to 7 cents lower at midday with trade scoring new lows amid spread unwinding and demand concerns tied to ethanol. Ethanol margins remain very poor, with unleaded futures hitting the lowest level since 2008 on demand loss with a slight rally on both unleaded flat and ethanol a dime lower this AM. Corn basis has remained steady, but will likely erode at end users nearby. Rains have worked across much of the belt short term to slow early field work. On the May contract support is the $3.50 area, with resistance the 20-day at $3.75. SOYBEANS Soybean trade is 4 to 6 cents higher at midday with trade trying to find some footing after the beginning of the week washout. Meal is narrowly mixed and oil is 40 to 50 points higher. 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 with the ral scoring new lows again. 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 longer-term low at $8.21 scored Monday, with resistance the lower Bollinger Band at $8.33. WHEAT Wheat trade is 4 to 8 cents higher at midday with spread unwinding at short covering offsetting the sharply higher dollar at midday with Kansas City trade leading. Weather threats for the Plains remain limited with cooler and wetter short-term weather. Kansas City is at a 71-cent discount to Chicago on the May with choppy trade continuing, while Minneapolis is plus 13 to the Chicago. World export business has been quieter in recent days but new tenders are being issued to extend importers to harvest with Russian values sinking as well. The May Kansas City chart support is the lower Bollinger Band at $4.17, with resistance the 20-day at 4.48. 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.