DTN Midday Grain Comments 02/27 11:24

DTN Midday Grain Comments 02/27 11:24 All Grains Higher at Midday Firm slower trade is seen at midday with Dec corn testing $4. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat to lower at midday with the Dow futures down 20 points. The interest rate products are higher. The dollar index is 50 points higher. Energies are lower with crude down 0.50. Livestock trade is higher. Precious metals are lower with gold down $14.00. CORN Corn trade is 1 to 2 cents higher at midday with futures holding the steady higher trend. Good hedge selling is noted at the $4 level and we have not moved above there albeit the daily high yesterday and through midday today. Ethanol margins remain positive with futures edging higher again; the past few weeks have been the best margins of the winter. US export corn values should remain pretty competitive with the daily wire remaining active. The USDA announced 130,000 metric tons sold to unknown today. Double crop areas in Brazil look to build some moisture in the coming days, but that is slowing planting progress. Argentine weather remains tough which remains one of the most talked about subjects preventing selling. On the May chart support is at the 10-day at $3.75 with the 20-day at 3.72 below that, with the 200-day moving average at $3.80 1/2 the highest moving average. SOYBEANS Soybean trade is 3 to 7 cents higher at midday with meal $7 higher and soybean oil down 20 points. Outside markets have crude down over $1 and the stock market lower giving some outside market pressure which has bean oil down at midday. The weather pattern looks to keep Argentina dry, and Brazil wet in the near term with pod fill approaching for Argentina, and early harvest ongoing for Brazil. Volatility will likely remain in place with trade shaking off the poor finish yesterday. That may be the most impressive item to point out this morning. On the May contract, support is the 10-day moving average at $10.39, with resistance the $10.59 1/2, which is the six-month high scored to open the week. Wheat Wheat trade is 4 to 11 cents higher at midday. Support is noted from the Kansas City wheat leading Chicago and Minneapolis higher after the wheat condition report lowered Kansas conditions to 12% good to excellent, and 49% poor to very poor, and left Oklahoma unchanged at 4% good to excellent. The extended forecast continues to be short on moisture the western wheat belt, with soft wheat growing areas inline for better near term moisture. The dollar index has moved back over 90, with trade looking to get a close above that area after failing to hold earlier rallies. Black Sea origin values have risen on the export market, but will likely maintain their edge in the near term. On the May Kansas City wheat support is at the 20-day at $4.85, with resistance the upper Bollinger band at 4.99, which we are above at midday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.