Agfax Buzz:
    June 12, 2014

    DTN Grain Midday: Soybean Trade Takes Plunge

    AgFax.Com - Your Online Ag News Source

    By David Fiala, DTN Contributing Analyst

    Soybeans are sharply lower at midday while corn and wheat tread water.

    General Comments

    The U.S. stock market indices are lower with the Dow futures down 40. The interest rate products are lower. The dollar index is 14 lower. Energies are sharply higher with crude $1.50 higher. Livestock trade is higher. Precious metals are mixed with gold up $12.

    CORN

    Corn trade is flat to 3 cents lower at midday. Ethanol prices have been pressured but the margins are still good, and the strength in crude oil should support blender margins. Basis has firmed slightly this week. Export sales were OK at 409,700 metric tons of old crop and 105,500 metric tons of new crop. The weather forecast remains mostly good in the near term which will keep some pressure on the market, but the good underlying demand should help to keep a level of support under the market at $4.35. Resistance is at $4.50 on the December contract on a rally.

    SOYBEANS

    Soybean trade is sharply lower at midday with July 17 to 22 cents lower and November 8 to 12 cents lower. Meal is $6 to $8 lower and oil is 20 to 30 cents higher. The July/November inverse is down to $2.15, which is a new low for the move. Growing weather is forecasted to remain good for soybeans in coming days, and speculation about increased soybeans acres should continue, which should weigh on November soybean trade. Export sales were OK at 86,700 metric tons of old crop, and 403,300 of new crop. Product sales were 59,500 metric tons old crop meal, 10,800 of new crop meal, and 71,800 metric tons of bean oil. On the November chart, resistance was found at the 20-day moving average, currently at $12.32, and we are back below the $12.25 10-day. Those are our resistance levels and support should be found at $12 tomorrow.

    WHEAT

    Wheat trade is flat to 3 cents lower across the three contracts with light liquidation continuing. Harvest delays look to persist across the Southern Plains potentially adding support in the near term. The weaker dollar could add support as well if sustained. July Kansas City dropped below the 200-day yesterday. If we cannot get back above this level, at $7.09, by Friday long liquidation could get bigger into the weekend.

    Tags: , , , , , , , , , ,

     
    Copyright DTN. All rights reserved. Disclaimer.
    Powered By DTN

    Leave a Reply

    Name and Email Address are required fields. Your email will not be published or shared with third parties.

    Sunbelt Ag News

      Planting Intentions Not a Surprise, Grain Stocks Another Matter – DTN03-31

      Wheat: Know When to Apply Right Herbicide at the Right Time03-31

      DTN Cotton Close: Rebounds Following Post-Report Dip03-31

      Welch on Wheat: Reports Mostly in Line with Expectations03-31

      Welch on Grain: Bearish Reports for Corn03-31

      DTN Grain Close: Reports Support Soybeans, Disappoint Corn, Wheat03-31

      USDA: Weekly National Peanut Prices03-31

      Good on Grain: USDA Has Friendly Surprise for Soybeans; Negative News for Corn03-31

      Shurley on Cotton: Acreage Intentions Meet High End of Expectations03-31

      Rice Stocks: Rough Rice Up 26%03-31

      Grain Stocks: Corn, Wheat, Soybeans All Increase03-31

      Indiana: Too Cold to Plant; Nebraska: Tillage, Weed Spray Started – DTN03-31

      USDA Conservation Service Has $332M to Give Away – Applications Due May 1503-31

      USDA Perspective Plantings: Soybeans Gain. Otherwise, Slippage.03-31

      DTN Fertilizer Trends: Concerns About Dry Weather, Acid Shortage03-31

      DTN Livestock Midday: Lack of Buyer Interest03-31

      DTN Grain Midday: Weather Concerns in Southern Plains03-31

      Peanuts: Penn State Finds Heart-Healthy Mealtime Boost03-31

      Soybeans: Climate Change Cost Farmers $11B Over Last 20 Years03-31

      Pecans: 11 Land-Grant Institutions Help Protect Yields03-31

      DTN Cotton Open: Lower Trades Ahead of USDA Report03-31

      Tung Trees: Beautiful, Toxic, and Need to be Taken Out03-31

      DTN Livestock Open: Follow-Through Buying Support03-31

      DTN Grain Open: U.S. Dollar Extends Recent Gains03-31