DTN Midday Grain Comments 03/06 11:22

DTN Midday Grain Comments 03/06 11:22 Grain Trade Mixed at Midday Mixed action at midday in quiet action ahead of the USDA number due on Thursday morning. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower at midday with the Dow futures down 130 points. The interest rate products are lower. The dollar index is 50 points lower. Energies are lower with crude down 0.25. Livestock trade is mixed. Precious metals are higher with gold up 19.30. CORN Corn trade is narrowly mixed at midday with quiet trade continuing near the upper end of the range. Ethanol margins remain positive with some narrowing as the energy complex pulls back from the recent highs with corn working higher, with ethanol values edging higher, as futures test $1.50 a gallon. Double crop areas in Brazil look to build some moisture in the coming days, will keep planting slow. Argentine weather remains tough which remains one of the most talked about subjects preventing selling as the end of the growing season draws near. The daily wire has been quiet to start the week for exports. On the May chart, support is at the 200-day at $3.80 1/2 that we were able to close above last week, with resistance becoming the $3.88 high heading towards the report on Thursday. SOYBEANS Soybean trade is 1 to 4 cents lower with trade chopping along in the upper end of the range as we get closer to Thursday's report, with November soybeans remaining positive. Meal is $5 to $6 lower and oil is 5 to 15 points higher. The weather pattern looks to keep Argentina dry with Brazil still having moisture in the near term. Crush margins are at near record levels as we see crush capacity get maxed out domestically, but meal has started to struggle the last few trading sessions with another attempt to turn lower this morning. The USDA announced 120,000 metric tons of soybeans sold to China. On the May contract, support is the 10-day moving average at $10.58, with resistance the $10.82 1/2, which is the six-month high scored Friday. WHEAT Wheat trade is mixed with spring wheat 3 to 6 cents higher, and winter wheat 5 to 8 cents lower with volatile trade continuing. Weekly crop conditions moved Kansas to 50% poor to very poor, up 2 percentage points on the week, but good to excellent was up 1 percentage points to 13% good to excellent as well. The dollar index washed back below 90 on the index this morning. Black Sea origin values have risen on the export market, but will likely maintain their edge in the near term even as they remain around $210 a ton. On the May Kansas City wheat support is at the 10-day at $5.13, with trade above all other levels of resistance for now. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.