DTN Midday Grain Comments 02/26 12:19

DTN Midday Grain Comments 02/26 12:19 Grains Lower at Midday Broad selling across the grain markets again today. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat with the Dow 3 points higher. The interest rate products are lower. The dollar index is 20 points lower. Energies are firmer, with crude up 0.45. Livestock trade is firmer. Precious metals are flat with gold up 0.70. CORN Corn trade is 3 to 4 cents lower at midday. Chart selling pressure is noted taking contracts to new lows for the move or challenging them. South America crop progress will remain on track for corn with no weather concerns illustrated in the market. The switch to spring blending will support ethanol in the short term or expected to. But the old weather and some rail disruptions may be forcing some plant slowdowns in addition to continued poor margins. Market bulls are arguing at this juncture that the extended cold forecasts with all snow is already pointing toward likely planting issues or delays. Corn basis should firm again with the weak board this week with more weather for moving grain. Trade will be watching as well to see if nearby export business is sustained. On the May chart support is at the $3.75 1/2 low printed this morning then the $3.75 5-month low, followed by the $3.63 1/4 contract low. Resistance is at the $3.82 10-day moving average. SOYBEANS Soybean trade is 10 to 12 cents lower with trade failing back into the range from last week after failing to sustain the strength on Monday. Meal is $2.50 to $3.50 lower and oil 30 to 40 points lower. South America weather should maintain the recent pattern in the coming days with Brazil harvest moving along and drier weather in Argentina with pod fill on going with some rain expected later this week. Crush margins remain strong with meal still holding #300 a ton. Trade talks are expected to continue with a final summit in late March with the next 10-million-metric-ton commitment noted, with Sec. Perdue confirming it was for nearby shipment. Mexico bought 120,000 metric tons on the daily wire. On the May chart, support is at the $9.07 low printed last week with resistance at the $9.22 200-day and 10-day moving averages. WHEAT Wheat trade is flat to 8 cents lower at midday with Kansas City trade the downside leader again, surrendering the spread gains seen yesterday. Trade will be closely focused on export business in the near term with more talk of renewed Russian movement and limited offers on today's tenders. The dollar has remained flat to lower in the past week. Cold weather is expected to keep some stress on the plains in the near term with winter wanting to hang around with conditions well above last year on the first report. On the May Kansas City, chart support is low at $4.43 fresh low with resistance at the 10-day at $4.72. Wheat is oversold but long liquidation remains an issue. 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 2019 DTN/The Progressive Farmer. All rights reserved.