DTN Midday Grain Comments 03/06 11:18

DTN Midday Grain Comments 03/06 11:18 All Grains Lower at Midday Wheat leads the market broadly lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 80 points lower. The interest rate products are weaker. The dollar index is 3 points lower. Energies are mixed, with crude down 0.60. Livestock trade is weaker. Precious metals are mixed with gold up 2.00. CORN Corn trade is 3 to 4 cents lower at midday with broad selling returning during the day session, with wheat leading things lower. South America crop progress looks to remain on track for corn. Weekly ethanol production was 4,000 barrels per day lower, with stocks 552,000 barrels higher, with futures slightly lower. Corn basis will be supported by ongoing weather issues. Early planting is going in the south as well with weather concerns likely to build in the north into March with flooding in the mid-South causing problems now and an active month expected moisture-wise. On the May chart support is at the $3.66 3/4 low scored Friday, followed by the $3.63 1/4 contract low. Resistance is at the $3.76 3/4 10-day moving average which we remain faded back from. SOYBEANS Soybean trade is 6 to 8 cents lower at midday with trade fading back to the lower end of the range again. Meal is $3.00 to $4.00 lower and bean oil is 10 to 20 lower. South America weather should maintain the recent pattern in the coming days with Brazil harvest moving along and normal progress in Argentina. Crush margins remain strong with meal hanging around $307 a ton. Trade progress is believed to us fairly close to a deal closing soon but specifics remain sparse with mixed messages picking up again. The daily export wire has been quiet so far this week. On the May chart, support is at the $9.00 low printed last Friday with resistance at the $9.17 100-day moving averages which we tested before fading overnight. WHEAT Wheat trade is 1 to 10 cents lower at midday with spring wheat trade leading as the winter wheats surrender their gains from yesterday. Kansas City trade has continued to narrow the discount to the other contracts the last few trading days, with Kansas City/Chicago down to 10 cents from 20-plus recently. Export news has been quieter lately with fresh tenders expected soon to gauge activity by major importers with sales this week around $252 a ton. The dollar has come back to 96.8 on the index. Cold weather is expected to keep some stress on the plains in the near term with good snow cover for the most part. On the May Kansas City chart, support is low at $4.32 1/2 fresh low with resistance at the 10-day at $4.50. 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 2019 DTN/The Progressive Farmer. All rights reserved.