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DTN Midday Grain Comments     03/27 10:57

   Wheat Higher at Midday

   Corn is 1 to 3 cents lower, soybeans are 3 to 5 cents lower, and wheat is 3 
to 9 cents higher.

By David Fiala
DTN Contributing Analyst

 General Comments



   The U.S. stock market is weaker with the Dow down 770 points as active trade 
continues. The dollar index is 10 points lower. Interest rate products are 
mostly higher. Energies are mostly lower with crude 1.10 lower. Livestock trade 
is sharply lower. Precious metals are weaker with gold down 25.00.


   Corn trade is 1 to 3 cents lower at midday with rangebound action continuing 
heading towards the weekend. Ethanol margins remain very poor, with more plants 
shutting down, with ethanol still trade at 45-50 cent premium to unleaded as 
demand collapses. Corn basis will likely continue to see pressure except for 
export oriented locations. Rains have worked across much of the Corn Belt short 
term to slow early field work with the extended forecast looking drier. More 
corn hit the export wire with 114,048 metric tons sold to unknown. On the May 
contract support is the lower Bollinger band at $3.28, and resistance the 
20-day at $3.57.


   Soybean trade is 3 to 5 cents lower at midday with the overnight highs 
fading once again. Meal is $1.00 to $2.00 lower and oil is 10 to 20 points 
higher. South America is continuing to harvest with port disruptions this 
biggest concern at the moment with talks of strikes in Argentina as well, while 
the Brazilian ral has gained a little vs. the dollar this week. New crop 
soybeans will need to gain vs. corn to provide an acreage incentive with the 
price ratio now at 2.4 or so. The daily wire showed 163,290 metric tons old to 
Mexico. The May soybean chart support is the 20-day at 8.71, and the recent 
high at $8.97 as resistance.


   Wheat trade is 3 to 9 cents higher at midday with trade finding buying again 
overnight after the pullback yesterday, as Kansas City trade tries to 
consolidate above $4.90. Weather threats remain limited for now. Russia 
continues to review export policies for the short term as well. Kansas City is 
at a 77-cent discount to Chicago on the May with choppy trade continuing, while 
Minneapolis is minus 39 with wider action continuing. World export business has 
shifted towards Asia short term. The May Kansas City chart support is the old 
high at $4.93, and resistance the January high at $5.05. 

   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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