DTN Midday Grain Comments 02/28 11:51

DTN Midday Grain Comments 02/28 11:51 Grains All Higher at Midday Wheat leads firmer trade across the board at midday. 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 50 points. The interest rate products are lower. The dollar index is 18 points higher. Energies are lower with crude down 1.15. Livestock trade is mixed. Precious metals are mixed with gold up $2.00. CORN Corn trade is 3 to 5 cents higher at midday with corn trading through $4.00 on the December contract on spillover support from wheat along with South America weather. Ethanol margins remain positive with the weekly report showing production down 24,000 barrels per day, stocks up 226,000 barrels, and gasoline demand lower. U.S. export corn values should remain pretty competitive with the daily wire remaining active this week, even with no sales announced 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, which we are above at midday. SOYBEANS Soybean trade is flat to 5 cents higher with trade trying to challenge the highs again overnight before fading slightly into midday. Meal is $5 to $6 higher and oil is flat to 10 higher. 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, with some relief possible for parts of Argentina in the near term. Crush margins are at near record levels as we see crush capacity get maxed out, while exports remain slow but 250,000 metric tons did hit the daily wire today. On the May contract, support is the 10-day moving average at $10.41, with resistance the $10.59 1/2, which is the six-month high scored to open the week. WHEAT Wheat trade is 5 to 20 cents higher at midday with trade scoring new highs again this morning as the plains remain dry in the near term. Chicago trade has the most midday strength, trying to narrow the spread with Kansas City action, while Minneapolis lags. 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 even as they move over $2.06 a ton. On the May, Kansas City wheat support is at the 20-day at $4.88, 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 dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.