|
|
|
|
|
|
|
DTN Midday Grain Comments 08/08 10:56
Corn Futures Higher at Midday; Soybeans, Wheat Lower
Corn futures are 3 to 6 cents higher at midday Monday; soybean futures are 4
to 19 cents lower; wheat futures are 3 to 11 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 3 to 6 cents higher at midday Monday; soybean futures are 4
to 19 cents lower; wheat futures are 3 to 11 cents lower. The U.S. stock market
is weaker with the DOW down 125 points. The U.S. Dollar Index is 110 points
higher. Interest rate products are weaker. Energies are mixed with crude up
1.50. Livestock trade is mostly higher with cattle. Precious metals are mixed
with gold $14.00 higher.
CORN:
Corn futures are 7 to 8 cents lower overnight with flat to slightly firmer
spread action as trade looks to position for the WASDE report Friday as well as
digest the extent of weekend rains and the weather ahead. Outside markets have
the dollar fading a little off the highs and energies mixed near recent lows
for crude and related products. Short-term forecasts show drier weather for
most in the near term with warmer-than-normal temperatures for the center and
western parts of the Corn Belt. Ethanol margins will continue to be limited by
driving demand and seasonal slowdowns with unleaded futures at six-month lows
to crimp blending margins. Basis will be watched to see how much further
strength fades, especially with the board rally and harvest starting in the
South. USDA's weekly Crop Progress report is expected to show steady to
slightly lower conditions with maturity getting closer to the five-year
average. On the September chart, support is the fresh low at $5.61 1/2 scored
two weeks ago with the lower Bollinger Band just below that at $5.60, with
trade holding back above the 20-day moving average at $5.97; the upper
Bollinger Band is the next round up at $6.23.
SOYBEANS:
Soybean futures are 7 to 12 cents lower overnight with two-sided trade so
far as we wait to see how the weather evolves in pod-fill season, along with
waiting to see if further demand can be confirmed from last week's rally after
the first confirmations of Chinese buying last week. Meal is $2.00 to $3.00
lower and oil is 60 to 70 points higher. Biodiesel margins remain positive but
narrowing in recent days. South America is on post-harvest footing for shipping
with their advantage to persist, while the bulk of the U.S. is heading into the
start of pod-fill season with warmer and drier weather for much of the belt
this week after the mixed weekend rains. Basis is fading a bit at processors
and exporters in recent days as early harvest in the south draws closer. On the
September soybean chart, support is the 20-day moving average at $13.99, which
we bounced off last week, with the Upper Bollinger Band at $14.95 as the next
round up.
WHEAT:
Wheat futures are 9 to 14 cents lower overnight with early gains fading as
trade works back to the lower end of the range to see where commercial buying
emerges and what kind of pace Black Sea shipping maintains short term. Plains
weather looks warmer and drier this week with moisture needing to be built
before planting time. Harvest is wrapped up, except for the north growing
areas, while spring wheat sees heat with harvest about to start. Steady weekly
conditions are expected on the Crop Progress report with maturity still well
behind normal. The dollar remains near the highs, which is likely to limit
exports. The KC September chart has resistance at the 20-day moving average
above the market at $8.57, which we faded from again overnight, with the lower
Bollinger band at $8.22 the next round down.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
(c) Copyright 2022 DTN, LLC. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up today.
|
|
|
|