DTN Midday Grain Comments 03/03 11:08

DTN Midday Grain Comments 03/03 11:08 Wheat, Corn Higher at Midday Corn is 5 to 6 cents higher, soybeans are flat to 1 cent lower, and wheat is 2 to 5 cents higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow down 300 in very active trade. The dollar index is 5 lower. Interest rate products are weaker. Energies are firmer with crude up $0.45. Livestock trade is mostly higher. Precious metals are mixed with gold up $40.80. CORN Corn trade is 5 to 6 cents higher at midday with trade looking to build on the reversal Monday with spread trade remaining firm. Ethanol margins have seen pressure from the corn futures bounce, while unleaded as slid vs. ethanol futures this a.m. Corn basis might see some light pressure to start the week if futures strength can hold. On the May contract support is the fresh lows at $3.65 marked Friday, with the lower Bollinger band at $3.68 just above that and resistance the 20-day at $3.81, which we are testing at midday. SOYBEANS Soybean trade is flat to a penny lower at midday with trade trying to consolidate back over $9.00 nearby with early buying fading again. Meal is flat to $1.00 lower and oil is 30 to 40 points higher. South America should see continued harvest progress as they try to catch back up to the average pace. The Brazilian ral remains very cheap as well hurting U.S. export competitiveness, with the dollar finding support despite the Fed rate cut. New crop soybeans will need to gain vs. corn to provide an acreage incentive ahead of planting in the US with positive action to start the week, but not enough to change the conversation yet. The May soybean chart support is the the 20-day at $8.96, which we moved above yesterday, with the upper Bollinger band at $9.08 the next round up. WHEAT Wheat trade is 2 to 5 cents higher with Chicago wheat regaining the lead at midday after higher protein wheat started the name. Weather threats for the plains remain limited with mostly warmer short term weather after the recent rain and snow with more wheat likely exciting dormancy. Kansas City is at a 63-cent discount to Chicago on the May gaining solidly again today, with choppy action so far while Minneapolis plus 4 vs. the Chicago May. World export business has been quieter in recent days. The May Kansas City chart support is the lower Bollinger Band at $4.50, with resistance the 20-day at $4.70. 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 (AG) Copyright 2020 DTN/The Progressive Farmer. All rights reserved.