DTN Midday Grain Comments 08/07 11:06
All Grains Lower at Midday
Corn is 3 to 4 cents lower, soybeans are 7 to 8 cents lower, and wheat is 4
to 9 cents lower.
David Fiala,DTN Contributing Analyst
The U.S. stock market is weaker with the Dow down 80 points. The dollar
index is 60 points higher. Interest rate products are weaker. Energies are
softer with crude down $0.60. Livestock trade is mostly higher. Precious metals
are weaker with gold down $20.
Corn trade is 3 to 4 cents lower at midday with trade testing the lower end
of the range heading towards the weekend with little fresh bullish news to
encourage buying. Ethanol margins are stable short term with flat energies and
gasoline demand edging higher this week. Basis has remained fairly flat in
recent days, with pressure likely at locations with a strong crop coming soon.
Weather looks to remain non-threatening. On the September contract, trade
continues to have resistance at the 20-day at $3.22, with chart support at the
lower Bollinger Band at $3.07.
Soybean trade is 7 to 8 cents lower overnight with trade battling between
good demand and good weather with another 465,000 metric tons booked to China
as the export pace remains torrid. Meal is flat to 1.00 lower and oil is 35 to
45 points lower. The ral has weakened vs. the dollar the last day or so, but
new crop should remain competitive for the U.S. Weather looks to continue to be
good for most into podfill. The September chart now has resistance at the
20-day at 8.87 which we are pulling back from, and support the lower Bollinger
Band at 8.63.
Wheat trade is 4 to 9 cents lower pushing trade into new lows, with Russian
estimates moving higher as they get into better yielding areas of the country.
The ruble is holding vs. the dollar as well with more Middle East tenders being
scheduled. Spring wheat harvest should build momentum with Canada production
estimates strong as well. Kansas City is at an 80-cent discount to Chicago with
spreads narrower today, while Minneapolis is back to a 1 cent discount with
slight weakness in the intermonth spreads. Kansas City September chart support
is the fresh low at $4.09 3/4, with the 20-day back above the market as nearby
resistance at $4.39.
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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