DTN Midday Grain Comments 07/29 11:04
Grains Mixed at Midday
Soybeans lead at midday with corn and wheat slightly higher.
By David Fiala
DTN Contributing Analyst
U.S. stock market indices are mixed with the DOW futures down 15 points.
Interest rate products are lower. The dollar index is 120 points lower.
Energies are mixed with crude .20 higher. Livestock trade is mostly higher.
Precious metals are higher with gold $12.90 higher.
Corn futures are 1 to 2 cents higher at midday with support from the
stronger soybean trade and weaker dollar, while pressure from moderate
near-term weather and yield expectations weigh on the market. Ethanol margins
for producers and blenders are under pressure with the sliding energy market,
with producers still having positive margins for now. The weather forecast is
cooler in the near term with rain expected to catch some of the remaining dry
areas over the next week, with some heat returning next week. The bull argument
here is strong demand is present to take on the big supplies, with U.S. origin
at a discount to the rest of the world. On the December contract support is the
contract low at $3.33 1/4. Resistance is the 10-day moving average at $3.43;
then the 20-day at $3.52.
Soybean futures are 14 to 19 cents higher at midday with trade finding
buying during the day session on the back of strong demand and oversold
conditions, with meal $4 to $5 higher and oil 50 to 60 points higher. Near-term
weather looks non-threatening for the most part, and the warmer and drier
extended forecast moderated overnight, but continues to fluctuate. The USDA
announced futher sales of 129,000 metric tons of soybeans to unknown split
between old and new crop. The daily wire has been busy the last three days, and
will need to stay that way to get trade excited about demand. On the November
soybean chart support is at the $9.63 3-month recent low, then the 200-day
moving average at 9.53, with resistance at the 10-day moving average at $9.98.
Wheat futures are 1 to 4 cents higher across the three contracts at midday
with the firmer row-crop trade and the sharply weaker dollar this morning
helping trade to firm back from some early weakness. The heavy world and
domestic supplies continue to limit upside in wheat. Production estimates
continue to slide out of Continental Europe while Russian production estimates
remain strong as harvest moves along. Lower acres for next season will also be
on the trade's mind with planting for winter wheat not far off. On the KC
December chart support is at the $4.24 contract low. Resistance is at the
10-day and 20-day moving averages around $4.38-40 then the 50-day at 4.73.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered trading adviser.
David Fiala can be reached at firstname.lastname@example.org
Follow David Fiala on Twitter @davidfiala
Copyright 2016 DTN/The Progressive Farmer. All rights reserved.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot