DTN Closing Grain Comments    08/26 14:18
   Crop Prices Soar to New Heights Wednesday

   Price action in row-crop futures hit a new level of bullishness at midweek
with wheat future jumping to new calendar-year highs and deeper into three-year
highs as well after Tuesday's price dip (on the suspension of Russian export
taxes) was swiftly rejected by the market as a meaningful policy shift -- and
with reports of a dead end for negotiations in the Black Sea region. Corn and
soybeans followed suit with corn futures deeper into three-year highs as well
as traders brace for lower supplies domestically and globally in the new-crop
year. Outside energy markets were positive on Wednesday after two lower
sessions as traders await the next headlines out of the Middle East following
the U.S. announcement of tighter sanctions on Iran earlier this week.
Meanwhile, in Wednesday's EIA report, the Strategic Petroleum Reserve was again
drawn down to 289.7 million barrels, the lowest since the last week of November
in 1982. In other macroeconomic news, the July Personal Consumption Expenditure
Index was noted at a year-over-year headline rate of inflation of 3.7%, just
above expectations but even with June and remaining above the Fed's 2% target.

Rhett Montgomery
DTN Lead Analyst

GENERAL COMMENTS:

   September corn closed up 13 1/2 cents and December corn was up 13 cents.
September soybeans closed up 26 1/4 cents and November soybeans were up 28 1/4
cents. September KC wheat closed up 37 1/2 cents, September Chicago wheat was
up 45 cents, September MIAX Minneapolis wheat was up 27 1/2 cents.