Soybeans lead at midday, while corn and wheat surrender early gains.
Corn trade is narrowly mixed at midday with trade waiting for the planting progress report this afternoon along with mixed spillover from soybeans and wheat. The weather forecast is expected to bring heavy rains into the middle of the belt this week, but better progress may have been scored late last week, especially in the I states. Ethanol margins should open the week fairly steady.
The weekly export inspections were strong at 1.453 million metric tons. The weekly progress report is expected to show planting progress 4% to 6% behind normal with good early week progress possible catching us up more. On the May chart support is at the $3.54 3-month low with resistance at the $3.62 20 and 200-day moving averages.
Soybean trade is 5 to 7 cents higher at midday with the seasonal recovery still trying to build more into the beginning of the week. Meal is $3.50 to $4.50 higher and oil is flat to 10 points higher. South America harvest pressure should be pretty well wrapped up. Trade may be looking to discourage US soybean acreage via lower prices with November futures hanging around $9.50; the area of our six-month lows, but it has been gaining vs. corn the past few days. Basis should remain steady this week seasonally.
The weekly export inspections were ok at 634,877 metric tons. Planting progress for soybeans may be issued this week, but it will be a small amount in any event. May soybean chart support is the 10-day moving average at $9.49; with the multi-month low at $9.29 below that, with resistance the 20-day at $9.51 which were above at midday and the 50-day at 10.04 way above that.
Wheat trade is 1 to 6 cents lower at midday after early strength gave way during the day session yet again despite the weaker dollar and growing world weather concerns. Wheat open interest hit a new record with the liquidation last week, which should induce more short covering if positive finishes can be mounted.
Parts of Kansas got fairly cold over the weekend but damage should be limited with heavy rains for much of the belt this week. The Dakotas look wet enough to keep planting slow for now, but progress should be able to catch up in the next week in North Dakota. The European crop looks to struggle with dryness this week along with some concerns building in Russia.
The weekly export inspections were good at 612,536 metric tons. The condition report is expected to improve slightly this afternoon with progress remaining ahead of normal, while spring wheat planting will likely remain behind normal, but should have a narrower gap this week. The dollar index is testing the 99 area after the French election.
On the May Kansas City contract support is at the new low at $3.98 3/4 with resistance at the $4.19 20-day moving average.
The U.S. stock market indices are higher with the Dow 195 points higher. The interest rate products are lower. The dollar index is 89 points lower. Energies are lower with crude down $0.45. Livestock trade is mixed with hogs higher. Precious metals are mixed with gold down 12.70.