DTN Midday Grain Comments 09/03 12:04 All Grains Higher at Midday Corn moves to new highs with a bang; trade has been up nearly 20 cents. By David Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market indices are firmer with the Dow futures up 95. The interest rate products are lower. The dollar index is down 35. Energies are lower with crude down $1.30. Cattle are mixed and hogs are higher. Precious metals are mixed. GENERAL COMMENTS CORN Corn trade is 14 to 16 higher at midday in active trade. Outside market influence is actually negative making our midday strength more impressive. The yield results have been a little worse than expected which has been supportive. The big export numbers have also been supportive. We moved above the yearly high early in the session, which has sparked buying interest and uncovered a good number of stops. Expect active trade the remainder of the day with the $4.50 December level now chart support. The July 2011 contract high was 12 1/4 cents away from $5. SOYBEANS Soybean trade is 22 higher due to spillover support from corn. Meal is up $6 and bean oil up 70 points. The weakness in crude is not holding back the gains in grains/oilseeds. At midday we are off our highs, but we did run up near our recent highs. November beans are now just above $10.30, support should be found in the mid to lower $10.20 range the rest of the day. First-of-month buying and short-covering ahead of the holiday weekend appear to be the main theme rather than long profit-taking in grains. Expect active trade into the close. WHEAT Wheat trade is around 20 higher at midday. Spillover support from the row crops appears to be taking wheat higher. Some first of the month buying does appear to have been around this week. Now additional buying is around because we have moved to new three-week highs. The world situation is still tight and we need to have a good southern hemisphere crop to lesson the bullish grip that is on our trade right now. There also appears to be long commodity, or at least long grain interest in the speculative crowd. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Commodity Trading Advisor. (AG) Copyright 2010 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.
