DTN Midday Grain Comments

All Grains Higher at Midday

David M Fiala
By  David Fiala , DTN Contributing Analyst
(DTN photo by Nick Scalise)

General Comments

The U.S. stock market indices are firmer with the Dow 60 higher. The dollar index is 35 higher. Interest rate products are firmer. Energies are mixed with crude $0.10 lower. Livestock trade is firmer with hogs leading. Precious metals are firmer with gold $2.30 higher.

CORN

Corn trade is 6 to 8 cents higher at midday with trade following soybeans higher after the broad selling to start the week. Cooler temps look to build the second half of the weekend with seasonal weather into next week. Ethanol margins will remain tight with plentiful supply and summer driving season coming to an end and ethanol futures just above $1.45 a gallon. Harvest should be on the downhill slide for Brazil with more signs of imports into the SE U.S., with mixed world conditions. Basis has started to moderate in some areas as well, with intramonth spreads firmer even with the weakness this a.m. On the September nearby chart, support is at the 50-day at $4.26 which we have tested this morning with the 100-day below that at $4.03, with resistance the 10-day at $4.37.

SOYBEANS

Soybean trade is 20 to 23 cents higher with trade taking off late in the overnight session and seeing more buying during the day session with products leading values along with spread unwinding meal is $6.00 to $7.00 higher and oil is 20 to 30 points higher. World export demand remains slow, with the rèal still cheap as it has been unable to sustain gains. Weather will come into focus more as we head towards August and podfill season. The September chart support is the 50-day at 8.82, with the next level up the 100-day at 8.96, with the 20-day the next round at $9.00, which we are above at midday, with 200-day at $9.16 the next level up.

WHEAT

Wheat trade is 6 to 13 cents higher with trade seeing spillover support from the row crops. The Kansas City/Chicago spread is wider this a.m. The corn/HRW spread is wider as well. The warmer weather should allow harvest to progress to move to the home stretch, while Europe makes progress, and the Black Sea continues to see mixed yields as harvest rolls on. The dollar is just below 97 on the index with firmer action this morning. The September Kansas City chart support is the recent low at $4.31 with the first resistance the 10-day at 4.45, with the 100-day at 4.50 the next round up.

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

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David Fiala