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DTN Midday Grain Comments     03/21 11:29

   All Grains Higher at Midday

   Corn leads trade at midday with firmer action developing.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are firmer with the Dow 160 points higher. The 
interest rate products are mixed. The dollar index is 65 points higher. 
Energies are mixed, with crude 0.10 higher. Livestock trade is firmer led by 
hogs. Precious metals are firmer with gold down 8.80. 


   Corn trade is 4 to 5 cents higher at midday with better buying developing 
during 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 in the 
near term with Brazil trending drier for double crop corn but it remains early. 
Ethanol margins have improved this week, but remain tight with the effects of 
production disruptions still likely a little way off, and flat to slightly 
higher futures 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 weekly export 
sales were improved at 855,900 metric tons of old crop, and 90,000 of new. On 
the May chart support is the 10-day at $3.68 which we bounced from this 
morning, with the next level of resistance the 20-day at $3.71 3/4 being taken 
out this morning, and the 50-day at 3.80 the next round up.


   Soybean trade is 2 to 3 cents higher with trade remaining firmly range bound 
between $9.00 and $9.10 with two-sided trade continuing. Meal is $1.50 to $2.50 
lower, and oil is 10 to 20 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. The weekly 
export sales were soft at 399,500 metric tons of old crop soybeans, -64,400 of 
new, 97,500 of meal, and 5,500 of oil. On the May chart support is the $9.01 
3/8 10-day moving average, with the 20-day at $9.07 3/8 the next level up, 
which we are just above at midday, with the 100-day at $9.17 the next round up. 


   Wheat trade is flat to 3 cents higher with trade fighting off the overnight 
selling and sharply stronger dollar to move higher during the day session 
again. 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 will be focused on in the 
near term with exports potentially slowing from the Black Sea area with the 
weekly sales a little soft at 298,600 metric tons of old crop, and 138,800 of 
new. 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 $4.41 that we closed above 
yesterday with the 10-day at $4.36 below that, with the upper Bollinger band 
the next round up at $4.63.

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser
He can be reached at 
Follow him on Twitter @davidfiala


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