DTN Midday Grain Comments 03/26 11:58

DTN Midday Grain Comments 03/26 11:58 Grains Mixed at Midday Soybeans are firmer at midday, with corn and wheat turning lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer at midday with the Do0w futures up 290 points. The interest rate products are mixed. The dollar index is 35 points lower. Energies are weaker with crude down 0.60. Livestock trade is mixed. Precious metals are mixed with gold up $5.50. CORN Corn trade is 2 to 3 cents lower at midday with trade following wheat lower after early strength. Ethanol margins should remain positive to start the week, with futures drifting slightly lower this morning. Double crop planting in Brazil should continue to expand. The daily wire was quiet to end last week, so trade will be watching to see if bookings pick back up with nothing today. US weather looks to be cool and wet for much of the belt, limiting early field work. The weekly export inspections were a bit softer at 1.153 million metric tons. Basis has started to firm again with the break in futures prices. On the May chart, we slipped below the 200-day moving average at $3.78 1/2, which is now resistance, but we have tested that area overnight, with support at the 50-day at $3.74 1/2 which we have tested this morning. SOYBEANS Soybean trade is 1 to 4 cents higher at midday with trade struggling to hold gains at midday even as Argentina looks to finish out the growing season poorly. Meal is $1 to $2 higher and oil is narrowly mixed. The weather pattern looks to return to some near-term dryness for much of South America with rains for much of the eastern belt incoming for the United States, with southern planting off to a slow start. Crush margins have improved with meal regaining forward momentum, with meal trading back above $3.80 overnight and holding near there during the day session. The export wire has been quiet with business shifting seasonally to Brazil, but we saw a soymeal sale to Spain of 120,000 metric tons, and 132,000 metric tons of soybeans to unknown. Weekly export inspections improved slightly at 584,612 metric tons. On the May contract, support is the 50-day at 10.23, which we tested today with resistance at the 20-day at 10.47. WHEAT Wheat trade is 4 cents lower to 9 cents lower with trade giving back early gains with buying enthusiasm still lacking in the absence of a fresh story. The coming week looks drier again, but growth should be boosted in the short term after the recent rains, with rains mostly staying further east. The weekly condition report should show some improvement for Kansas, but overall will remain well below recent years. The dollar index has slipped just below 89 overnight, likely adding further support if sustained. Black Sea origin prices have been more sideways, but the U.S. remains disadvantaged on the world market. Weekly export inspections were disappointing at 278,815 metric tons. On the May Kansas City wheat support is the 100-day at $4.65, with the 200-day and 50-day at $4.85 the next round up, which we tested early on in the overnight trade. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.