DTN Midday Grain Comments 07/29 11:22
Mixed Grain Trade at Midday
Soybeans are slightly higher at midday while corn and wheat are solidly
By David Fiala
DTN Contributing Analyst
The U.S. stock markets are higher with the DOW futures up 100 points. The
interest rate products are higher. The dollar index is 14 points higher.
Energies are higher with crude up $1.25. Livestock trade is mixed. Precious
metals are mixed with gold down $3.
Corn trade is 4 to 6 cents lower at midday with the fund selling keeping
pressure on the market. Outside markets are mixed ahead of the Fed Statement
this afternoon. Apart from isolated storms weather looks like non-issue nearby.
Ethanol margins remain under pressure from the weaker crude and unleaded values
eating in the blender margins, with the weekly report 8,000 barrels per day,
and stocks were .5% higher. On the December chart corn slipped below the $3.97
level where we found both the 50-day and 100-day moving averages. This is now
chart resistance. The first real notable support now is the contract low at
Soybean trade is flat to 6 cents higher with trade falling back from 10 to
15 cent higher trade early on in the day session with commercial buying leading
the way. Meal is $1 to $2 higher and oil is 20 to 30 points lower. The Chinese
economic concerns will likely continue to weigh on the market along with the
weak corn and crude oil trade encouraging selling on rallies. Weather remains
non-threatening for established beans as we work into the main reproductive
window for them, On the November chart, support now is the contract lows at
$8.95. Resistance on a bounce will be the 100-day moving average at $9.55,
which is the lowest major moving average.
Wheat trade is 8 to 14 cents lower across the three contracts at midday with
the weak corn trade encouraging further long liquidation with the trade making
new contract lows. Wheat trade remains heavily oversold but short covering
rallies have been very brief in recent days. Major world producers look to be
off a little on production this year, but overall world supplies remain ample.
The Chicago/Kansas City spread is narrowing this morning indicating the eastern
quality concerns are being dealt with. On the September Kansas City wheat chart
support is the fresh low at 4.95 with the 10-day moving average 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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