DTN Midday Grain Comments 07/15 10:49
Beans, Wheat Higher at Midday
Corn is narrowly mixed, soybeans are 4 to 6 cents higher, and wheat is 4 to
17 cents higher.
David Fiala,DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 250 points. The dollar index
is 24 points lower. Interest rate products are weaker. Energies are mostly
higher with crude up $0.50. Livestock trade is mixed with cattle leading.
Precious metals are weaker with gold down $4.00.
Corn trade is narrowly mixed at midday with showers working across parts of
the Belt this a.m. as pollination continues. The forecast has better rains for
many in it, but remains warm into pollination for many. The ethanol margins
have narrowed with the weekly report showing production 17,000 barrels per day
higher, with stocks 12,000 lower. Trade saw another 129,000 metric tons sold to
China after the record sale Tuesday. On the September contract, support is the
lower Bollinger Band at $3.16 after we gapped below the 20-day at $3.35 to
start the week.
Soybean trade is 4 to 6 cents higher with trade working to build on the
better action seen yesterday after the selloff slowed and old crop leads. Meal
is flat to $1.00 higher and oil is 10 to 20 points higher. The ral remains at
the midpoint of the recent range vs. the dollar. Crush margins remain stable.
China bought another 389,000 metric tons of soybeans today. The August chart
now has support at the 20-day at $8.77 which we got back above yesterday, with
the upper Bollinger Band at $9.02 as resistance.
Wheat trade is 4 to 17 cents higher with Chicago trade going to new highs
for the move with support from fund buying and lighter European yields. The
ruble remains in the recent range vs. the dollar with Black Sea wheat still
winning tenders. Kansas City is at a 91-cent discount to Chicago with spreads
sharply wider the last four days, while Minneapolis is back to a 21 cent
discount. Kansas City chart support is the 20-day at $4.41, with the upper
Bollinger Band at $4.55 the next round up which we are testing 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
(c) Copyright 2020 DTN, LLC. All rights reserved.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot