DTN Midday Grain Comments 02/27 11:11

DTN Midday Grain Comments 02/27 11:11 Wheat, Beans Higher at Midday Wheat and soybeans up, find light buying with corn still struggling. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 115 points lower. The interest rate products are firmer. The dollar index is 10 points higher. Energies are firmer, with crude up 1.80. Livestock trade is mostly higher. Precious metals are weaker with gold down 5.00. CORN Corn trade is flat to 1 cent lower overnight in at midday trade with the March contract going into delivery at the end of the session. Chart-selling pressure is noted taking contracts to new lows for the move or challenging them with pressure likely at times through the close today. South America crop progress will remain on track for corn with no weather concerns illustrated in the market. The weekly ethanol report showed production up again this week by 32,000 barrels, and stocks down by 204,000 barrels, with futures holding the 1.35 area. Corn basis should firm again with the weak board this week with more weather for moving grain with the roll over to May bids. Trade will be watching as well to see if nearby export business is sustained with nothing on the wire today. Early planting is going in the south as well with weather concerns likely to build in the north into March. On the May chart, support is at the $3.75 1/2 low printed yesterday then the $3.75 five-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 4 to 5 cents higher at midday with trade continuing to hold nearby support levels. Meal is $2.50 to $3.50 higher and oil 10 to 20 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 will continue to watch for broader support on China securing bushels vs. their recent commitments with trade rep. Lightenhizer today throwing some cold water on expectations this morning. The fresh sales are slow to show up on the daily wire as well. 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 1 to 4 cents higher at midday with trade seeing short covering overnight, with the day session struggles returning again. Trade will be closely focused on export business in the near term with more talk of renewed Russian movement and most movement around $225-230 a metric ton. The dollar has remained flat to lower in the past week with light buying this morning. 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, albeit for wheat in dormancy. On the May Kansas City chart, support is low at $4.43 fresh low with resistance at the 10-day at $4.67. 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.