DTN Midday Grain Comments 07/16 11:20
Beans, Corn Higher at Midday
Corn is 4 to 5 cents higher, soybeans are 6 to 7 cents higher, and wheat is
10 to 13 cents lower.
David Fiala,DTN Contributing Analyst
The U.S. stock market is weaker with the Dow down 90 points. The dollar
index is 10 points lower. Interest rate products are higher. Energies are
mostly weaker with crude down $0.10. Livestock trade is higher with hogs
leading. Precious metals are weaker with gold down $7.00.
Corn trade is 4 to 5 cents higher at midday with trade trying to sustain
buying after the struggles this week. The forecast continues to show better
rains with warmer than normal temps for most. The ethanol margins look to
narrow coming forward with concerns about gasoline demand persisting. Weekly
export sales were good at 981,000 metric tons of old crop, and 655,400 of new
crop. On the September contract, trade continues to have resistance at the gap
level from Sunday night at $3.36, with the lower Bollinger band at $3.16.
Soybean trade is 7 to 8 cents higher with trade working higher on expected
further export business and short covering along with sales of 873,000 metric
tons on the daily wire, mostly to China. Meal was $0.50 to $1.50 higher, with
oil 30 to 40 points higher. June soybean crush was 167 million bushels, about 5
million above expectations. The ral remains at the midpoint of the recent
range vs. the dollar. Weekly export sales were OK with 313,000 metric tons of
old crop, and 767,700 metric tons, meal was 177,200 of old, 27,800 of new, and
5,700 of oil. Weather looks fairly non-threating near term. The August chart
now has support at the 20-day at $8.80 which we got back above yesterday, with
the upper Bollinger Band at $9.04 as resistance.
Wheat trade is 11 to 13 cents lower overnight with profit taking in Chicago
action notable after the big run this week, and no announcement of the rumored
SRW sales. The ruble remains in the recent range vs. the dollar with Black Sea
wheat still winning tenders while yield concerns linger. Kansas City is at an
90-cent discount to Chicago with spreads sharply wider the last four days,
while Minneapolis is back to a 21 cent discount. Weekly export sales were
strong at 764,400 metric tons Kansas City chart support is the 20-day at $4.41,
with the upper Bollinger Band at $4.55 which we failed to hold this morning.
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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