DTN Midday Grain Comments 03/18 11:26

DTN Midday Grain Comments     03/15 11:12

   Grains All Higher at Midday

   Trade is broadly firmer at midday.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are firmer with the Dow 100 points higher. The 
interest rate products are weaker. The dollar index is 25 lower. Energies are 
weaker, with crude 0.20 lower. Livestock trade is firmer with hogs leading. 
Precious metals are firmer with gold up 8.00. 

   CORN

   Corn trade is 2 to 3 cents higher at midday with trade following soybeans 
higher and testing the next level of resistance. South America crop progress 
should remain uneventful in the near term. Ethanol margins remain under 
pressure for producers with ethanol futures firming with corn this week, moving 
back to the higher end of the range. Corn basis will be supported by ongoing 
weather issues nearby with Gulf offers struggling along with logistics issues 
building with the river system to see more stress from melting snow along with 
poor road conditions. Early planting is going in the south as well with weather 
concerns likely to build in the north into March with flooding the main concern 
with the Mississippi and Missouri Rivers seeing big inflows. On the May chart 
support is the 10-day at $3.69, with the next level of resistance the 20-day at 
$3.73 1/2.

   SOYBEANS

   Soybean trade is 6 to 8 cents higher at midday with trade still working to 
consolidate above $9.00 on the May contract with better short covering 
developing. Meal is 2.50 to 3.50 higher and oil is flat to 10 points higher. 
Even with the final summit delayed, it does look like trade progress has been 
scored in regards to intellectual property. South America weather should 
maintain the recent pattern in the coming days with Brazil harvest moving along 
and normal progress in Argentina. Crush margins remain strong overall with meal 
still holding $300 with record February crush expected today. On the May chart 
support is at the $8.89 1/2 low printed Tuesday with resistance at the $9.01 
10-day moving average, which we are above at midday, with the 20-day at $9.10 
the next level up. 

   WHEAT

   Wheat trade is 4 to 5 cents higher with active trade expected into the 
weekend, with the winter wheats looking to score good weekly gains and 
consolidate the reversal. Spreads are pretty steady this morning. There has 
been more talk of Ukraine running out of exportable near term supplies as well. 
Cooler than normal weather will keep wheat development slow on the plains, and 
spring wheat planting likely to start slow this year. Wheat basis varies widely 
on product and location. On the May Kansas City chart, support is low at $4.18 
3/4 fresh low with resistance at the 10-day at $4.36, which we are back above 
at midday, with the 20-day at 4.46 the next round up.

   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


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