DTN Midday Grain Comments 08/05 10:55
Grains Mixed at Midday
Corn is 1 to 2 cents higher, soybeans are 2 to 3 cents lower, and wheat is 1
to 3 cents higher.
David Fiala,DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 330 points. The dollar index
is 80 points lower. Interest rate products are weaker. Energies are firmer with
crude up $1.50. Livestock trade is mixed. Precious metals are higher with gold
Corn trade is 1 to 2 cents higher at midday with light buying after the
sharp selloff to start the week with new lows scored yesterday with oversold
conditions in place, and varying yield estimates emerging from Private sources.
Ethanol margins are stable to a little better with action of the energy
complex, with the weekly report showing production off by 27,000 barrels per
day, with stocks up 74,000 barrels. Basis has remained fairly flat in recent
days, with isolated pockets of pre-harvest strength for now. On the September
contract, trade continues to have resistance at the 20-day at $3.24, with chart
support at the lower Bollinger Band at $3.06 which we are testing at midday.
Soybean trade is 2 to 3 cents lower at midday with trade working to find
support after the selloff yesterday with non-threatening weather requiring more
demand to get trade excited with another 192,000 metric tons of new crop sold
to China. Meal is flat to $1.00 lower and oil is 5 to 15 points lower. The ral
remains at the upper point of the recent range vs. the dollar, which should
keep new crop interest robust for now. The September chart now has resistance
at the 20-day at 8.90 which is pulling back from, and supportting the lower
Bollinger Band at 8.73.
Wheat trade is 1 to 3 cents higher with light buying supported by the
sharply weaker dollar with trade working to hold the lower end of the recent
range. The ruble is holding vs. the dollar as well with more Middle East
tenders being scheduled. Kansas City is at a 86-cent discount to Chicago with
spreads back to the top end of the range, while Minneapolis is back to a 6 cent
discount with slight strength in the intermonth spreads. Kansas City September
chart support is the fresh low at $4.21 3/4, with the 20-day back above the
market as nearby resistance at $4.43.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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