DTN Midday Grain Comments     03/22 11:31

   Grains Mixed at Midday

   Mixed trade at midday as early strength fades.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are weaker with the Dow 330 points lower. The 
interest rate products are weaker. The dollar index is 20 points higher. 
Energies are weaker, with crude 1.40 lower. Livestock trade has turned lower. 
Precious metals are mixed with gold up 4.00. 

   CORN

   Corn trade is flat to 2 cents higher at midday with trade working into the 
next level of resistance overnight before fading on the day session. Midwest 
weather issues are hindering demand and movement, which will continue for a bit 
with a wet start to April expected for much of the belt. South America crop 
progress should remain uneventful for now. Ethanol margins have improved this 
week, but remain tight with the rally in the energy complex slowing its rally, 
but ethanol futures remain slightly higher this a.m. Corn basis will be mixed 
depending greatly on local conditions. The slow start to fieldwork will 
continue to be watched in the near term with fertilizer logistics likely to be 
a major issue. The USDA announced 300,000 metric tons of Corn sold to China. On 
the May chart support is the 20-day at $3.71 5/8, with the 50-day at $3.79 5/8 
as resistance, which we are tested before fading.

   SOYBEANS

   Soybean trade is 5 to 6 cents lower with trade remaining firmly range bound 
between $9.00 and $9.10 and two-sided trade continuing. Meal is flat to $1.00 
lower, and oil is 30 to 40 points lower. Trade news has been quieter this week 
with no major reports. 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 hanging near 
$310 a ton with support coming back into the market at midweek. Forward demand 
remains a concern with the hog losses to swine fever. On the May chart support 
is the $9.01 3/8 10-day moving average, with the 20-day at $9.07 the next level 
up, which we failed to hold this morning, with the 100-day at $9.17 the next 
round up. 

   WHEAT

   Wheat trade is flat to 3 cents higher with trade working slightly higher 
after the stronger midweek action and profit taking heading towards the 
weekend. Trade is still focused on easing oversold conditions with the large 
fund short remaining in place with planting season coming up for spring wheat, 
and weather likely to remain challenging. Export news has been quieter lately 
with most of the focus on high-protein wheat. Warm plains weather will pull the 
crop out of dormancy with generally good conditions so far. Wheat basis varies 
widely on product and location. On the May Kansas City chart support is the 
20-day at $4.40 that we closed above midweek with the 10-day at $4.39 below 
that, with the upper Bollinger Band the next round up at $4.55.

   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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