DTN Midday Grain Comments 03/27 11:54

DTN Midday Grain Comments 03/27 11:54 Mixed Grain Trade at Midday Soybeans and corn are around unchanged at midday in slow pre-report type action. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are firmer at midday with the Dow futures up 210 points. The interest rate products are higher. The dollar index is 25 points higher. Energies are slightly higher. Livestock trade is higher. Precious metals are lower with gold down $12. CORN Corn trade is unchanged at midday with two-sided action seen; May futures have only seen a 2 1/2 cent trading range. Outside markets are mixed with the dollar crude and stock market all higher. The trade sees the wet weather from Texas up to the Great Lakes region as mixed for the market with most market focus on the upcoming acres and stocks report due out Thursday. Most of the acre guesses are in the 88.5 to 90.0 million range with March 1 Quarterly stocks expected to be equal to or 100 million greater than the 8.621 billion bushel figure a year ago. On the May chart we slipped below the 200-day moving average at $3.78 1/2, which is now resistance with the 50-day at $3.74 1/2 in the middle of our daily trading range. Notable support is at last week's low at $3.69 1/2. SOYBEANS Soybean trade is unchanged at midday, with meal slightly lower and soybean oil slightly higher. The market continues to expect lower production estimates for Argentina with their weather news fading in importance due to the late stage of production at this juncture. Now the focus is moving toward the U.S. growing season and acreage. The trade has been talking about acres in the 90-million-to-92-million range with the economics favoring beans in many areas; and less overall risk and input costs this year after a few years of stagnant and lower grain prices. So keep Thursday in mind as a very important report day, maybe one of the top days of the year, which it commonly is. The quarterly soybean stocks will be a reminder of the large old crop stocks; the trade is expecting a March 1 number just above 2 billion bushels versus the 1.739 billion bushel March 1 2017 number. On the May contract, support is the 50-day at 10.23, which we tested today, then the 100-day at $10.07 with resistance at the 20-day at 10.47. WHEAT Wheat trade is 2 to 4 cents lower at midday in slow trade; wheat has seen a bigger trading range than corn; we are near our daily lows at midday with long liquidation noted. The beneficial moisture is noted for the lower trade today, but not a surprise with the market drop in anticipation to a wetter pattern. Looking to Thursday the March 1 wheat stocks should be around 1.475-1.5 billion bushels versus 1.657 billion a year ago. The winter wheat acreage is expected to be at 32.6 million acres with spring at 13.1-13.5 million; with total wheat acreage around 46 million acres. On the May Kansas City chart, wheat support is the 100-day at $4.63, with the 50-day at $4.87 chart resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.