DTN Midday Grain Comments 03/08 11:38

DTN Midday Grain Comments 03/08 11:38 Grains Mixed at Midday Wheat is weaker ahead of the report with corn and soybeans mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer at midday with the Dow futures down 40. The interest rate products are lower. The dollar index is 40 points higher. Energies are lower with crude down 0.50. Livestock trade is lower. Precious metals are lower with gold down $5.40. CORN Corn trade is fractionally higher in quiet pre-report trade remaining near the upper end of the range and six-month highs. Ethanol margins remain positive with spring driving season rapidly approaching, with futures edging higher this morning. Double-crop areas in Brazil look to build some moisture in the coming days; will keep planting remaining behind normal. 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 with weekly sales remained strong at 1.86 million metric tons. Japan bought 110,000 metric tons of corn on the daily wire. On the WASDE report, domestic carryout is expected to be 2.312 billion bushels, world stocks at 199.36 million metric tons, with Argentina production at 36.58 million metric tons. On the May chart support is at the 10-day at $3.83 that, with resistance becoming the $3.89 high heading towards the report on Thursday. SOYBEANS Soybean trade is narrowly mixed ahead of the report with the trade coming off the early lows with strong exports today. Meal is flat to $1 higher and oil is 10 to 20 points lower. The weather pattern is bringing some rain to parts of Argentina with Brazil remaining mostly the same. The erosion of meal values is causing crush margins to retreat from the highs. Weekly export sales were really strong at 2.51 million metric tons of beans, 200,600 metric tons of meal, and 16,600 of oil. On the report, domestic carryout is expected to be 530 million bushels, world stocks 95.31 million metric tons, with Brazil production at 113.82, and Argentina at 48.36 million metric tons. On the May contract, support is the 10-day moving average at $10.61 which we tested this morning, with resistance the $10.82 1/2, which is the six-month high scored Friday. WHEAT Wheat trade is flat to 8 cents lower at midday with the most selling pressure in the Kansas City trade in pre-report action. Plains weather continues to be stressful with wind taxing the already short moisture conditions, but some improvement may be possible in the extended forecast. The dollar index remains in the 90 range on the index with a reversal after early weakness. Black Sea origin prices have drifted lower this week, solidifying their advantage. Weekly export sales were inline with expectations at 391,500 metric tons, The WASDE report is expected to show carryout at 1.015 billion bushels domestically, and world stocks at 265.63. On the May Kansas City wheat support is at the 10-day at $5.23, 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.