DTN Midday Grain Comments 09/01 11:03
Corn, Beans Lower at Midday
Wheat is the leader at midday, while row crops are struggling.
By David Fiala
DTN Contributing Analyst
The U.S. stock markets are lower with the DOW futures down 325 points. The
interest rate products are lower. The dollar index is 20 points lower. Energies
are sharply lower with crude down $3.30. Livestock trade is sharply lower.
Precious metals are mixed with gold up $6.
Corn trade is 3 to 5 cents lower overnight with trade continuing to grind
away in the recent range and pressure from soybeans and outside markets
dragging them down this morning. The weekly crop progress listed 60% of the
crop dented which is 10% ahead of last year and in line with the average;
mature corn was listed at 9% versus the 15% average. Crop conditions slipped 1%
to 68% good to excellent versus 74% a year ago. Seasonally light rating
declines are normal. Warmer weather is expected to continue this week, which
should move maturity along quicker. The USDA monthly report is due out next
Friday which will be the next major news trade this week should be active with
some direction from the outside markets. On the December chart support is at
the low from last week at $3.65 and then the contract low at $3.57. Resistance
is at the $3.79 20-day moving average then the $3.86 high printed last week.
Soybean trade is 12 to 14 cents lower at midday with Asian demand concerns
reigniting selling with meal $3 to $4 lower and oil 70 to 80 points lower.
Beans are starting to carve out a range in the $8.60 to $8.90 area. The weather
is still important to determine how the crop will finish out but few worries
are around. Crop progress listed 93% of the crop setting pods, 2% slower than
normal with 9% dropping leaves, 2% ahead of normal. Crop conditions remained at
63% good to excellent although 1% moved from good to excellent. On the November
soybean chart support is at the contract low of $8.55 is support with
resistance at $8.88 the previous low then the 20-day at $9.15.
Wheat trade is flat to 5 cents higher at midday with light follow through
buying after the good finish yesterday. The weaker dollar is adding support
this morning, but further weakness will need to be sustained to substantially
improve competitiveness. Weak fundamentals and chart pressure will continue to
limit upside. Crop progress listed spring wheat 88% harvested versus the 62%
average. Chart resistance for the December Kansas City contract is at the $4.91
10-day moving average. Support is at the $4.78 fresh contract low reached
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered trading adviser.
David Fiala can be reached at email@example.com
Follow David Fiala on Twitter @davidfiala
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