Grain Trade Mixed at Midday
Mixed action is seen at midday with corn lower and beans higher. The trade is mentioning position squaring ahead of Friday.
By David Fiala DTN Contributing Analyst
General Comments
The U.S. stock markets are mostly flat to higher The interest rate products are flat to lower. The dollar index is slightly lower. Energies are mixed with crude down 105. Livestock trade is mixed. Precious metals are mixed with gold, up $15.
CORN
Corn trade is 8 to 12 lower at midday with renewed selling pressure building. Rain moving through the Corn Belt looks to idle a lot of planters in the near term, but the extended forecast remains more open. On the July chart we have support around our Monday close at the $6.37 20-day moving average and resistance at the $6.62 50-day, and trade has fallen through resistance at midday. The new crop carryover estimate for Friday is 2.06 billion bushels with a range of 1.832-2.19 billion. The world new crop corn carryover estimate is 150.9 million tons. These are well above the old-crop estimates of 762 million domestically, and 125.9 million tons on the world balance sheet. Ethanol production slipped slightly on the week, which was a little bit of a surprise. Inventories shrunk again, which should continue to support margins coming forward.
Read More:
http://sweetfutures.com/2013/dtn-midday-comments-on-grains-7/
The risk of trading futures and options can be substantial. Trading foreign exchange carries a high degree of risk, and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by Sweet Futures 1, LLC shall be construed as a solicitation. Sweet Futures 1 does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by Sweet Futures 1. Past performance is not necessarily indicative of future results.
