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DTN Midday Grain Comments     08/27 11:21

   Corn, Beans Slightly Lower at Midday

   Grain trade is lightly lower at midday in limited action.

By David Fiala
DTN Contributing Analyst

General Comments

   The U.S. stock market indices are higher with the Dow up 15. The interest 
rate products are mixed. The dollar index is 16 lower. Energies are flat. 
Livestock trade is mixed. Precious metals are lower with gold down $2. 


   Corn trade is 2 to 4 cents lower in quiet action at midday. Futures seem 
content to chop around in the recent range just above the contract lows printed 
at the beginning of the month. Ethanol margins remain strong in the near term, 
and the weekly EIA ethanol production report showed production 2.56% lower, 
stocks were 5.12% lower, and gasoline demand was 3.7% higher. Weather continues 
to look like a non-issue in the near term, and fresh bushels are starting to 
flow in from the Southern Plains. On the December chart, the 10-day and 20-day 
moving averages are at $3.69 are now resistance with $3.81 after that. Support 
is at the $3.58 low printed on the August monthly report day.  


   Soybean trade is 3 to 6 cents lower at midday with trade giving back the 
gains seen overnight. Meal is $13 to $14 higher and oil is 10 to 20 points 
lower. Processor margins and interest remain strong but early harvest bushels 
are discouraging ownership of the September contact. The weather forecast 
remains good for the developing crop in the near term with scattered rains 
showing overnight and into this morning. November soybean chart support remains 
at the $10.20 low printed yesterday and resistance is at the 10-day at $10.42, 
then the 20-day at $10.56. 


   Wheat trade is narrowly mixed at midday across the three exchanges. The 
strong dollar will continue to be a limiting factor with values at 13-month 
highs despite a little weakness this morning. Quality concerns for the 
higher-protein classes will linger with rains in the U.S. slowing spring wheat 
harvest, after a wet harvest in Europe reduced quality there. The Ukrainian 
situation will require further monitoring for export disruption with more 
reports of increased Russian involvement surfacing overnight but also talks of 
ceasefire negotiations. On the chart, September Kansas City wheat is holding 
support at the 10-day moving average at $6.18 with the next level to mention is 
the $6.02 lower printed two weeks ago. 

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered Trading Advisor.

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered Trading Advisor. He can be reached at 
Follow David Fiala on Twitter @davidfiala 


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