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DTN Midday Grain Comments     08/28 11:31

   Soybeans Higher; Corn, Wheat Lower at Midday

   Soybeans are higher at midday, while corn and wheat are lower in slow trade.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock markets are lower with the Dow futures down 50 points. The 
interest rate products are mixed. The dollar index is 61 points higher. 
Energies are higher with crude up $2.60. Livestock trade is mostly higher. 
Precious metals are higher with gold up $9.


   Corn trade is fractionally to a penny lower at midday, giving back some 
early session gains with the stronger dollar weighing down trade. No major 
weather issues are out there at this juncture with more corn being combined in 
some of the Southern growing areas with variable yields so far. Warmer weather 
is expected the first week of September, which will help the crop move toward 
maturity. Crude futures have bounced back over $45, boosting ethanol blender 
margins with ethanol futures moving slightly higher, while unleaded is up 
solidly the past two days. On the December chart, support is at the early week 
low at $3.65, and then the contract term low at $3.57. Resistance is at the 
$3.79 20-day moving average, which we are just below, and closing above $3.77 
1/4 will be needed for a weekly gain. The next levels of resistance are the 
$3.86 weekly high, then the $3.94 100-day moving average. 


   Soybean trade is 1 to 4 cents higher in quiet trade at midday with 
commercial demand continuing to support action. Meal is $2 to $3 lower, and oil 
is 60 to 70 points higher. Trade will continue to watch weather to determine 
how the crop will finish out, especially in the eastern belt with some rains 
moving through the western areas overnight. If the concerns over forward 
Chinese demand can cool off, it may help stop the downtrend with significant 
sales to unknown destinations this week. On the November soybean chart, our new 
contract low this week at $8.55 is support with resistance at $8.88, the 10-day 
moving average and contract low from last week. 


   Wheat trade is 3 to 6 cents lower across the three contracts at midday with 
new lows being made on the KC contract with demand concerns and the stronger 
dollar limiting support. The new contract lows are only a few cents lower than 
the prior low. The wheat export market has been quiet in recent days with the 
U.S. still at a competitive disadvantage to other origins of wheat. Chart 
resistance for the September KC contract is at the $4.72 the 10-day moving 
average. Support is at the $4.59 1/4 fresh contract low reached Monday.  

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered trading adviser.
David Fiala can be reached at dfiala@futuresone.com 
Follow David Fiala on Twitter @davidfiala


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