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DTN Midday Grain Comments     08/31 11:14

   Grains Mixed at Midday

   Early strength gives way to mixed trade at midday. 

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are lower with the Dow down 65 points. The 
interest rate products are mostly higher. The dollar index is 6 points higher. 
Energies are weaker with crude down 1.40. Livestock trade is mostly lower. 
Precious metals are mixed with gold down $6.20. 


   Corn trade is flat to 1 cents higher at in quiet trade with a nickel range 
so far, as early buying gave up mid-morning. Ethanol margins are softer this 
morning with futures turning lower after weekly ethanol production came in 
0.49% lower, with stocks .52% higher, and gasoline demand .21% lower. Corn 
basis will remain on the defensive as harvest approaches with the last on farm 
bushels moving to town. The crop is expected to continue to advance with warmer 
temperatures as silage cutting moves through the belt and limited wet corn 
harvest gets started in some areas. The USDA announced 275,000 metric tons of 
corn sold to Mexico. On the chart, trade has support at the $3.14 3/4 low, with 
resistance at the 10-day of $3.31 if the trade can find buying support, as the 
trend remains down with successive new lows being put in.


   Soybean futures are 4 to 8 cents lower at midday this morning with trade 
testing the low end of the recent range. Meal is $1 to $2 lower and oil is 30 
to 40 points lower. Trade will be looking for more export announcesmens with 
the Chinese trade delegation visiting this week, as 187,000 metric tons of 
beans were announced as sold to China on the daily wire. Early planting in 
Brazil is now about two weeks away which will start attracting more attention 
soon. Wetter weather in much of the belt should help the crop to finish out. On 
the November soybean chart support was at the $9.60 low from Friday with the 
200-day at $9.66 above that; longer term support is the $9.30 area from April, 
with the $9.43 area of August support above that.  


   Wheat trade is mixed at midday as early short covering gave way to selling 
during the day session. Canadian harvest will be hitting full stride soon, and 
Russia looks to continue an aggressive export pace with ongoing issues in Egypt 
causing problems, although Egypt has returned with another tender overnight. 
Tunisa also secured some wheat and barely from the Black Sea this morning. The 
USDA also announced a sale of hard red wheat to unknown of 125,000 metric tons. 
U.S. spring wheat harvest should be nearing the end with spring wheat trade 
finding more support early in the week. On the Kansas City  December chart 
support is now the $3.95 low from yesterday, with trade well below the nearby 
moving averages. Chicago has printed a new contract low for the fifth day in a 
row, which Kansas City holding back above Chicago values. 

   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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