DTN Midday Grain Comments 03/09 10:55

DTN Midday Grain Comments 03/09 10:55 Grains Mostly Lower at Midday Corn is 4 to 5 cents lower, soybeans are 17 to 19 cents lower, and wheat is flat to 3 cents lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is sharply lower with the Dow down 1550 in very active trade with the circuit breakers tripped early in the session. The dollar index is 90 lower. Interest rate products are sharply weaker. Energies are sharply weaker with crude down $7.00. Livestock trade is sharply lower. Precious metals are weaker with gold flat. CORN Corn trade is 3 to 5 cents lower with broad market weakness out of the gate weighing on trade but spreads are firming, and we are off of our early lows. Ethanol margins continue to see pressure with maintenance season expected to slow production short term, with burdensome stocks, and sluggish gasoline demand on travel concerns along with the sharp drop in unleaded values with ethanol holding a small premium to unleaded currently. Corn basis has remained steady. Weekly export inspections were 829,865 metric tons. On the May contract support is the lower Bollinger Band at $3.67, with resistance the 20-day at $3.79. SOYBEANS Soybean trade is 17 to 19 cents lower with trade slumping along with the other markets, especially with the real sliding faster than the dollar. Meal is $4.00 to $5.00 lower and oil 75 to 85 lower. South America has seen little change this week with harvest mostly moving along, and more rains expected the next two weeks. New crop soybeans will need to gain vs. corn to provide an acreage incentive ahead of planting but everything remains in favor of bigger corn acres. Weekly export inspections were soft again at 572,416 metric tons, with 123,500 of old crop sold to unknown on the daily wire. The May soybean chart support is the fresh low at $8.67, with resistance the 20-day at $8.98. WHEAT Wheat trade is flat to 3 cents lower at midday with the Chicago wheat leading as trade sees further spillover pressure from the markets. Weather threats for the Plains remain limited with cooler and wetter short-term weather after the warm weekend likely drew more out of dormancy. Kansas City is at a 73-cent discount to Chicago on the May after narrower trade yesterday, while Minneapolis is plus 10 vs. the Chicago May as it tries to reestablish a premium. World export business has been quieter in recent days with Russian stocks still on the low side but new tenders are being issued again. Weekly export inspections are expected to be in the 415,518 metric ton range. The May Kansas City chart support is the lower Bollinger Band at $4.40, with resistance the recent highs around $4.53. 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.