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DTN Midday Grain Comments 08/14 10:53
Corn, Soybeans Lower at Midday; Wheat Higher
Corn futures are flat to 1 cent lower, soybean futures are 1 to 2 cents
lower, and wheat futures are 5 to 11 cents higher.
David Fiala,DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is firmer with the Dow down 30 points. The U.S. Dollar
Index is 25 points lower. Interest rate products are firmer. Energies are
mostly lower with crude down .20. Livestock trade is mixed with hogs leading.
Precious metals are mixed with gold down $14.
CORN:
Corn futures are flat to 1 cent lower at midday with trade pulling back from
Thursday's strength with consolidation needed to sustain the rally. Ethanol
margins are seeing some pressure from the corn rally but are stable overall.
Basis has remained fairly flat in recent days, with pressure likely at
locations with a strong crop coming soon. Storm damage will continue to be
debated until the next crop condition report. On the September contract, trade
has support at the 20-day moving average at $3.18, which we moved above
Thursday with the upper Bollinger Band at $3.33, the next round up.
SOYBEANS:
Soybean futures are 1 to 2 cents lower at midday with demand optimism
providing support with another 126,000 metric tons (mt) sold to China with
further export bookings while anticipated yields will continue to limit upside.
Meal is narrowly mixed and oil narrowly mixed with crush margins remaining
solid overall. The real remains in the tighter recent range vs. the dollar.
Weather looks to continue to be good for most into pod fill. The September
chart now has resistance at the $9.05 recent high with support at the 20-day
moving average at $8.86.
WHEAT:
Wheat futures are 5 to 11 cents higher with trade working to pull further
off the lower end of the range with support from the weaker dollar while spring
wheat harvest moves on, with intermonth spreads firmer and Chicago trade
leading. The ruble is holding vs. the dollar as well with more Middle East
tenders being scheduled into fall with Black Sea origin still firmly in
control. KC is at a 76-cent discount to Chicago with spreads widening back from
the narrowest action in a month, while Minneapolis is back to a 4-cent
discount. KC September chart support is the fresh low at $4.09 3/4, with the
20-day back above the market as nearby resistance at $4.32.
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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