DTN Midday Grain Comments 08/01 11:19
Soybeans Lower at Midday
Grain trade is mixed at midday with the market appearing to be waiting on
the moisture event Sunday into next week.
By David Fiala
DTN Contributing Analyst
Soybeans Lower at Midday
Wheat is bouncing a bit at midday, but beans and corn are back near contract
The U.S. stock market indices are lower with the Dow down 60. The interest
rate products are lower. The dollar index is 17 lower. Energies are mostly
lower with crude oil down $0.88. Livestock trade is mixed with feeder cattle
sharply lower. Precious metals are mixed with gold up $13.
Corn trade is around 2 cents lower at midday. The nearby September trade put
in a new low at $3.36 3/4 this morning before firming slightly. The weather
forecast remains mostly cool and mostly dry in the near term with a moisture
pick-up expected next week with Minnesota line for the most rain at midweek.
The sliding outside markets have crimped ethanol margins although they remain
strong. December contract support remains at the recent $3.64 low with $3.60
below that, with the 10-day moving average at $3.70 first resistance. If the
weather would give us a rally expect greater sell stops to be sitting above the
gap in the $3.78-3.80 area.
Soybean trade is 18 to 22 cents lower at midday with selling pressure
picking up at midday. Meal is $5 to $6 lower and oil is 45 to 55 points lower.
The weather forecast continues to hold better moisture available for soybeans
in the extended models, but near-term moisture remains limited. Once rains
come, it will likely renew the selling pressure on the market. On the November
chart, we are below all major moving averages; the contract low of $10.55 is
support. Chart resistance is at the $10.81 10-day then the $10.88 20-day moving
Wheat trade is 4 to 9 cents higher at midday with commercial buying
following through after the strong finish yesterday. The spreads have begun to
firm which is a good sign for demand. World wheat weather remains mostly a
non-issue for now with a few trouble spots still lingering. On the chart,
September Chicago trade is between the 10-day moving average at $5.29, and the
20-day moving average at $5.36. The September Kansas City trade is also between
the 10-day and 20-day moving averages at $6.23, and $6.35. Another positive
finish today would be encouraging for wheat, and trade is above resistance at
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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