DTN Midday Grain Comments 08/28 11:31
Soybeans Higher; Corn, Wheat Lower at Midday
Soybeans are higher at midday, while corn and wheat are lower in slow trade.
By David Fiala
DTN Contributing Analyst
The U.S. stock markets are lower with the Dow futures down 50 points. The
interest rate products are mixed. The dollar index is 61 points higher.
Energies are higher with crude up $2.60. Livestock trade is mostly higher.
Precious metals are higher with gold up $9.
Corn trade is fractionally to a penny lower at midday, giving back some
early session gains with the stronger dollar weighing down trade. No major
weather issues are out there at this juncture with more corn being combined in
some of the Southern growing areas with variable yields so far. Warmer weather
is expected the first week of September, which will help the crop move toward
maturity. Crude futures have bounced back over $45, boosting ethanol blender
margins with ethanol futures moving slightly higher, while unleaded is up
solidly the past two days. 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, and closing above $3.77
1/4 will be needed for a weekly gain. The next levels of resistance are the
$3.86 weekly high, then the $3.94 100-day moving average.
Soybean trade is 1 to 4 cents higher in quiet trade at midday with
commercial demand continuing to support action. Meal is $2 to $3 lower, and oil
is 60 to 70 points higher. Trade will continue to watch weather to determine
how the crop will finish out, especially in the eastern belt with some rains
moving through the western areas overnight. If the concerns over forward
Chinese demand can cool off, it may help stop the downtrend with significant
sales to unknown destinations this week. On the November soybean chart, our new
contract low this week at $8.55 is support with resistance at $8.88, the 10-day
moving average and contract low from last week.
Wheat trade is 3 to 6 cents lower across the three contracts at midday with
new lows being made on the KC contract with demand concerns and the stronger
dollar limiting support. The new contract lows are only a few cents lower than
the prior low. The wheat export market has been quiet in recent days with the
U.S. still at a competitive disadvantage to other origins of wheat. Chart
resistance for the September KC contract is at the $4.72 the 10-day moving
average. Support is at the $4.59 1/4 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 firstname.lastname@example.org
Follow David Fiala on Twitter @davidfiala
Copyright 2015 DTN/The Progressive Farmer. All rights reserved.
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