Soybeans Lead Grains Higher at MiddayGrain trade is positive across the board at midday is slow trade.
By David Fiala DTN Contributing Analyst
The U.S. stock market is flat to higher with the Dow futures up 70. The interest rate products are higher. The dollar index is 10 higher. Energies are higher with crude up $1.25. Livestock trade is mixed. Precious metals are lower with gold down $19.
Corn trade is fractionally to 3 higher in quiet midday trade. Outside markets are generally pretty neutral. Upside December resistance is now the $4.84 10-day, then the $4.98 20-day moving average. The weather forecast looks to bring better moisture to many areas in the near term, but continued below-normal temperatures are raising concerns. These concerns are limiting sellers at new lows. Ethanol production was off slightly on the week, but stocks dipped 800,000 barrels after consecutive draws, so overall fairly neutral as far as corn goes. The basis has started to show some signs of recovery.
Soybean trade is 13 higher on the August, and 2 to 5 higher on most other contracts at midday, meal is mixed and bean oil is up 10 to 20 points. Chart momentum has turned down, but is showing signs of stabilizing November soybean support is at $12.00 and resistance is at the $12.42 10-day moving average. Trade breached 12.00 overnight but has recovered so far. The USDA confirmed 120,000 metric tons of soybean sales to an unknown destination. Weather remains mostly non-threatening for beans in the near term as well. Old-crop basis has started to stabilize after the big break, and will be watched closely. The August contract goes into delivery today, which will tell us quite a bit about the amount of beans remaining if significant deliveries occur.
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