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DTN Midday Grain Comments     08/27 11:15

   All Grains Higher at Midday 

   Soybeans lead corn higher at midday.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock markets are higher with the Dow futures up 259 points. The 
interest rate products are mostly higher. The dollar index is 70 points higher. 
Energies are higher with crude up $2.60 cents. Livestock trade is mostly 
higher. Precious metals are higher with gold up $1.


   Corn trade is 2 to 3 cents higher at midday with trade continuing to grind 
around in the recent range. Outside markets are mixed this morning with crude 
and stock futures sharply higher, and the dollar and metals slightly higher. No 
major weather issues are out there at this juncture with more corn being 
shelled in some of the southern growing areas. Crude futures have bounced back 
over $41 at midday boosting ethanol blender margins, with ethanol futures 
moving slightly higher this morning while unleaded is up a nickel. The weekly 
export sales were good as an aggregate with -131,800 of old crop, and 986,000 
of new crop. On the December chart support is at the early week low at $3.65, 
and then the contract term low at $3.57. Resistance is at the $3.79 20-day 
moving average, which we are just below. The next levels of resistance are the 
$3.86 weekly high then the $3.94 100-day moving average. 


   Soybean trade is 12 to 17 cents higher at midday as commercial buying helps 
trade regain the losses from yesterday. Meal is $1 to $2 higher and oil is 70 
to 80 points higher. Trade will continue to watch weather to determine how the 
crop will finish out, especially in the eastern belt. If the concerns over 
forward Chinese demand can cool off it may help stop the downtrend with 
progress being made today with additional 130,000 metric tons of fresh sales 
being made today. The weekly export sales were good with -131,800 metric tons 
of old crop, 1.46 million of new crop, 56,100 of old crop meal, 93,800 of new 
crop meal, 17,100 of old crop oil, and 18,000 of new crop oil. On the November 
soybean chart our new contract low this week at $8.55 is support with 
resistance at $8.88, the previous contract low printed last week. The market 
did come up on Tuesday and fill the gap left under $8.88 Sunday night. This is 
a characteristic of a bear market when the market fills a gap then drops. 


   Wheat trade is 2 to 6 cents higher at midday finding support from the firmer 
row crop trade. Most contracts tested recent lows or contract lows yesterday, 
but are trying again to bounce enough to trigger short covering. The wheat 
export market has been quiet in recent days with the U.S. still at a 
competitive disadvantage to other origins of wheat. The weekly export sales 
were stronger than expected at 529,100 metric tons. Chart resistance for the 
September Kansas City contract is at the $4.77 the 10-day moving average. 
Support is at the $4.61 3/4 fresh contract low reached Monday.  

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered trading adviser.
David Fiala can be reached at 
Follow David Fiala on Twitter @davidfiala


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