All Grains Trading Lower at Midday
Lower trade lead by sharply lower soybean trade at midday.By David Fiala DTN Contributing Analyst
General Comments
The U.S. stock market is lower with the Dow futures off 80. The interest rate products are lower. The dollar index is 27 lower. Energies are mixed. Livestock trade is lower. Precious metals are higher with gold up $8.
CORN
Corn trade is 14 lower on September and 4 lower on December at midday. Commercial firms have dropped basis levels this morning and speculative longs have been liquidation due to losses. There is still a bullish outlook for old crop corn due to the lateness of the crop but that game has changed this week. Those buying cash looking for higher trade very quickly have cash corn worth as much as a buck less. Farmers holding old crop still, also face lower prices for the moment. We still have two months before the old crop game is over, or more. The cooler temperatures are viewed as good for pollination, but they are not good for a crop this late. The weekly export sales were poor for corn. The chart picture now has September below $5, if we can not close back above it bigger long liquidation appears likely into the close. December futures found support at $4.75, expect long liquidatin/sell stops below this level this afternoon.
SOYBEANS
Soybean trade is 30 to 35 lower at midday, meal is off $20 on August to $17 on December and bean oil is off 35-40 points. Outside markets have the dollar lower, crude flat and the stock market lower providing mixed influence. Weather is viewed as nonthreatening to the crop, which is keeping buyers away on weakness. China selling out of reserves to cool off the old crop soybean prices is what helped spark our weakness this week, and now the momentum is strongly down. So this week may get uglier for market bulls. The weather forecasts should control our direction next week, but for this week the longs have taken a good blow the past two days. The weekly export sales numbers were not bad but today was a day the market did not pay much attention to those numbers.
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http://sweetfutures.com/2013/dtn-midday-comments-on-grains-13/
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