DTN Midday Grain Comments     08/07 11:06

   All Grains Lower at Midday

   Corn is 3 to 4 cents lower, soybeans are 7 to 8 cents lower, and wheat is 4 
to 9 cents lower.

David Fiala,DTN Contributing Analyst

   The U.S. stock market is weaker with the Dow down 80 points. The dollar 
index is 60 points higher. Interest rate products are weaker. Energies are 
softer with crude down $0.60. Livestock trade is mostly higher. Precious metals 
are weaker with gold down $20.

   CORN

   Corn trade is 3 to 4 cents lower at midday with trade testing the lower end 
of the range heading towards the weekend with little fresh bullish news to 
encourage buying. Ethanol margins are stable short term with flat energies and 
gasoline demand edging higher this week. Basis has remained fairly flat in 
recent days, with pressure likely at locations with a strong crop coming soon. 
Weather looks to remain non-threatening. On the September contract, trade 
continues to have resistance at the 20-day at $3.22, with chart support at the 
lower Bollinger Band at $3.07.

   SOYBEANS

   Soybean trade is 7 to 8 cents lower overnight with trade battling between 
good demand and good weather with another 465,000 metric tons booked to China 
as the export pace remains torrid. Meal is flat to 1.00 lower and oil is 35 to 
45 points lower. The ral has weakened vs. the dollar the last day or so, but 
new crop should remain competitive for the U.S. Weather looks to continue to be 
good for most into podfill. The September chart now has resistance at the 
20-day at 8.87 which we are pulling back from, and support the lower Bollinger 
Band at 8.63.

   WHEAT

   Wheat trade is 4 to 9 cents lower pushing trade into new lows, with Russian 
estimates moving higher as they get into better yielding areas of the country. 
The ruble is holding vs. the dollar as well with more Middle East tenders being 
scheduled. Spring wheat harvest should build momentum with Canada production 
estimates strong as well. Kansas City is at an 80-cent discount to Chicago with 
spreads narrower today, while Minneapolis is back to a 1 cent discount with 
slight weakness in the intermonth spreads. Kansas City September chart support 
is the fresh low at $4.09 3/4, with the 20-day back above the market as nearby 
resistance at $4.39.

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




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