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DTN Midday Grain Comments     08/28 11:07

   All Grains Higher at Midday 

   Wheat leads grain trade higher at midday.

By David Fiala
DTN Contributing Analyst

General Comments

   The U.S. stock market indices are lower with the Dow down 55. The interest 
rate products are lower. The dollar index is 10 higher. Energies are mixed with 
crude up 50. Livestock trade is mixed. Precious metals are mixed with gold up 


   Corn trade is 2 to 4 cents higher at midday with support from sharply higher 
wheat and extensive rainfall raising some flooding/quality concerns. The daily 
range has only been a nickel, so action is slow for corn. Ethanol margins 
remain strong in the near term, with good consumptive interest ahead of the 
holiday weekend. The weekly export sales -32,000 metric tons of old crop, and 
695,600 metric tons of new crop. The lack of positive demand news does not have 
many anxious to buy corn ahead of this big upcoming harvest. 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 4 to 8 cents higher at midday in quiet trade especially by 
the recent standards that we have seen on the September contract which has 
ranged over a buck in around a week. Meal is $5 to $6 higher and bean oil is 
flat to 10 points lower. Processor margins and interest remain strong with very 
strong basis offers at processors. The weather forecast remains good for the 
developing crop with more finishing rain on the way. Sudden death syndrome has 
been widely reported this week, but extent of possible damage is unknown at 
this time. The weekly export sales were -62,800 metric tons of old and 1.29 
million metric tons of new crop, with product sales of 1,100 metric tons of old 
crop meal, 76,100 metric tons of new crop meal, and 11,300 of soyoil. November 
soybean chart support remains at the $10.20 low printed Tuesday and resistance 
is at the 10-day at $10.38, then the 20-day at $10.53.


   Wheat trade is 11 to 16 cents higher across the three contracts at midday 
with fresh fighting breaking out in Ukraine. The strong dollar will continue to 
be a limiting factor with values at 13-month highs but an escalating Ukrainian 
crisis would trump the dollar fairly quickly. Quality concerns for the 
higher-protein classes will linger with rains in the US sapping quality here 
and reducing the availability of quality milling wheat. The weekly export sales 
were only 403,600 metric tons. On the chart, December Kansas City wheat is 
above the 10-day and 20-day moving averages at $6.36, and $6.39, with 
resistance at $6.71 on further gains. 

   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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