DTN Closing Grain Comments    09/11 14:39
   Soybeans Dive on Surprise Yield Increase While Fundamentals Still Lean
Bullish

   Friday's price action was a textbook example of how the terms "bullish" and
"bearish" can vary greatly based on one's current perspective and positioning.
Take the soybean market for example, USDA's cut to ending stocks and
stocks-to-use percentage in Friday's World Agricultural Supply and Demand
Estimates (WASDE) report were bullish changes on paper, yet traders were quick
to express their frustrations that ending stocks were not printed sub-300
million bushels (mb) as has been priced into the market over the past month.
The overall bullish pillars, which have prompted late summer price rallies
across corn, soybeans, and wheat remain intact, but traders were clearly
looking for bullish validation now rather than in future adjustments from USDA,
especially with harvest gaining steam across the U.S. and an influx of supply
expected. Outside markets also leaned bearishly for Friday, with reversal
action seen in crude and diesel futures though the latter remains at record
highs. In macro news, the August Consumer Price Index rose 0.4% (seasonally
adjusted) to 3.4% year over year, with CME's FedWatch now penciling an 86.3%
chance of an interest rate hike in next week's Federal Reserve meeting.

Rhett Montgomery
DTN Lead Analyst

GENERAL COMMENTS:

   December corn closed down 3 1/2 cents and March corn was down 3 3/4 cents.
November soybeans closed down 35 3/4 cents and January soybeans were down 35
1/4 cents. December KC wheat closed down 20 1/4 cents, December Chicago wheat
was down 16 cents, December MIAX Minneapolis wheat was down 17 1/2 cents.