DTN Midday Grain Comments 08/31 11:19
Grain Futures Trade Mixed at Midday
After early losses, trade is mixed and trying to turn positive at midday.
By David Fiala
DTN Contributing Analyst
U.S. stock markets are lower with the DOW futures down 95 points. Interest
rate products are lower. The dollar index is 3 points lower. Energies are
narrowly mixed. Livestock trade is mostly higher. Precious metals are lower
with gold $4.
Corn futures are fractionally mixed at midday with trade continuing to grind
sideways. Warmer weather is expected this week, which will help the crop move
toward maturity. Crop ratings will likely be steady on today's Crop Progress
report with the trade looking at early harvest results the next few weeks to
give us market direction. Weekly export inspections were strong at slightly
over 1.0 million metric tons. Ethanol margins are improving with crude and
unleaded bouncing back late last week into this morning. The USDA monthly
report is due out next Friday, which will be the next major news giving a
sideways bias to this week. On the December chart support is at the weekly low
at $3.65 and then the contract low at $3.57. Resistance is at the $3.79 20-day
moving average then the $3.86 weekly high.
Soybean futures are 1 to 4 cents lower at midday with softer trade in Asia
inducing overnight weakness before trade caught a better bid during the day
session. Meal is flat to $1.00 lower and oil is 20 to 30 points lower. 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
last week. The concerns over forward Chinese demand and a big crop are expected
to limit upside in the near term but another 125,000 metric tons of soybeans
were announced as sold to unknown Monday morning. Crop conditions are expected
to be mostly unchanged on the week, with export inspections fairly soft at
184,285 metric tons. On the November soybean chart our new contract low last
week at $8.55 is support with resistance at $8.85, the 10-day moving average.
Wheat futures are narrowly mixed across the three contracts at midday with
the weaker dollar and strong inspections adding support. Weak fundamentals and
chart pressure continue to limit buying enthusiasm on bounces. Weekly export
inspections were strong at 601,639 metric tons. Chart resistance for the
December KC contract is at the $4.91 10-day moving average. Support is at the
$4.80 fresh contract low reached this morning.
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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