DTN Midday Grain Comments     09/07 11:59

   Beans, Wheat Higher at Midday

   Corn printed new highs overnight, but we are hovering around unchanged at 
midday even though outside market action is negative.

By David Fiala
DTN Contributing Analyst

MARKET SUMMARY:  

   The U.S. stock market indices are lower with the Dow futures down 70. The 
interest rate products are higher. The dollar index is up 65. Energies are 
lower with crude down $1.30. Cattle and hogs are mostly lower. Precious metals 
are higher with gold up $7. 

GENERAL COMMENTS

CORN 

   Corn trade is steady to a penny lower at midday. Trade has been mixed due to 
a combo of profit-taking by market longs along with weak crude trade versus 
follow-through buying and disappointing early yield reports. The weekly export 
inspections were low at 38 million bushels. The chart is still friendly 
following the running of buy stops above the $4.50 December level on Friday 
morning following the Informa yield comments which were mixed. But the bottom 
line there using a higher harvested-acreage number and an expected final yield 
around 159 bpa, put them in line with the Linn Group number. Look for December 
contract support down at $4.50 and the overnight highs are chart resistance for 
now.  

SOYBEANS 

   Soybean trade is better at midday with beans up a nickel, meal up $1 and 
bean oil up 50 points. The general buying interest in the soy complex is 
positive. The market is starting to act like it will test higher levels above 
our recent range this afternoon or this week. The crop ratings are expected o 
to be steady for beans and 1 percentage point lower for corn. If ratings are 
lower for beans it may help spark a move higher with the trade trying to run at 
any buy stops above the $10.50 November contract area. The Informa soybean 
yield number on Friday was neutral at 44.1 bushels per acre. The weekly export 
inspections were good at 13.9 million bushels. 

WHEAT 

   Wheat trade is 2 to 7 lower at midday in slow trade. The range overnight 
into the day session has been just over 20 cents with the majority of the range 
in lower territory. The flat to firming tone in the row crops should support 
wheat trade the rest of the day. U.S. export demand should continue to produce 
buying interest on breaks and keep wheat supported in the lower part of the 
recent trading range. The weekly export inspections were good at 22 million 
bushels. The trade is looking for mixed trade the remainder of the day. 

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered Commodity Trading Advisor. 


(AG)

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