DTN Midday Grain Comments 07/08 11:06
Grains Mixed at Midday
The U.S. stock market is mixed with the Dow flat. The dollar index is 25
points lower. Interest rate products are mixed. Energies are narrowly mixed
with crude flat. Livestock trade is mostly lower. Precious metals are firmer
with gold up $8.
David Fiala,DTN Contributing Analyst
Corn trade is narrowly mixed at midday with trade bouncing back off the
overnight lows as the forecast trended back hotter for the week. The forecast
has warmer conditions and spotty rain for most areas into mid-July, with the
second week trending warmer on some models overnight. The weekly ethanol report
showed production 14,000 barrels per day higher, while stocks were 456,000
barrels higher, the first rise in some time with concerns about forward demand
building. On the September contract, support is the 20-day at 3.35 with
resistance the upper Bollinger Band at $3.51.
Soybean trade is 2 to 3 cents lower at midday with choppy trade ongoing at
the upper end of the range and little fresh news. Meal is flat to $1.00 lower
and oil is 30 to 40 points lower. The real remains at the midpoints of the
recent range vs. the dollar. Crush margins have seen little change in recent
days. Drier weather into mid-month for many will add support but we remain
aways from the key podfill time frame. The August soybean chart resistance is
the $9.03 fresh high, with support the 20-day at $8.76.
Wheat is 7 to 17 cents higher at midday with harvest pressure fading more
along with the crop estimates for Europe and Russia trending lower, which is
encouraging short covering. The ruble remains in the recent range vs. the
dollar with Russia winning export tenders so far this week. Kansas City is at a
57-cent discount to Chicago on the August, while Minneapolis is back to a 8
cent premium. The September Kansas City chart support is the lower Bollinger
Band at $4.22, and resistance the 20-day at $4.44, which we are above at midday.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at email@example.com
Follow him on Twitter @davidfiala
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