Monday, April 8, 2013

DNT Midday Comments on Grains

Wheat Leads Grains Higher at Midday


Everything is green at midday other than new crop corn on the grain floor.
By David Fiala DTN Contributing Analyst

General Comments
   The U.S. stock markets are lower with the Dow futures down 30 points. The interest rate products are lower. The dollar index is 23 higher. Energies are flat to higher. Livestock trade is mostly higher. Precious metals are lower with gold off $8.
   CORN
   Corn trade is 4 lower on new crop to 3 higher on May at midday. The bull spreading is starting to survace due to the still tight old crop situation. July had been trading $1.50 over December in late March and slipped to 80 cents over late last week. The charts remain pretty oversold, and well below the major moving averages providing mixed hart ideas today. Ethanol margins remain strong and should help to support better demand as well move into summer driving season. The weekly export inspections were low at 10 million bushels. Weather looks to continue to keep farmers mostly out of the field with another winter storm moving through at midweek, which may help support new crop, possibly before the day is over. As a reminder, the grain trading hours return to the ole 1:15 closing time today.
   SOYBEANS
   Soybean trade is 12 higher on May and 3 higher on November at midday with a flat tone. Meal is $1 higher on nearby to $2 lower on new crop and bean oil is up 50-60 points across the board. China returns to trading without bird flu panic which is noted for the firmer trade overnight up to midday. Outside markets are neutal to negative noted limiting gains at midday. The weekly export inspections were at the high side of expectations at 15.3 million bushels. On May chart it appears we are trying to turn the momentum up, but we need to call it stagnate at midday. The 10-day moving average at $14.01 is the first notiable resistance level versus our $13.75 midday market. 

Read More
 http://sweetfutures.com/2013/dtn-midday-comments-on-grains-2/


The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.