July Chicago wheat closed up 9 3/4 cents and July K.C. wheat was up 9 1/4 cents Tuesday, bolstered by USDA crop ratings, which pointed to the worst U.S. winter wheat conditions since 2011. July corn ended up 2 1/2 cents, influenced by higher closes in wheat.
Midday: Mixed trade is seen at midday.
CORN
Corn trade is narrowly mixed at midday with a 2-cent range so far today in quiet trade. Fieldwork should expand in some areas this week with drier pockets to the east and south with warmer temps expected to wait until next week, with delays are expected to persist in Iowa/Minnesota area, with planting progress at 5% vs. 14% on average.
The second crop areas of Brazil look to remain on the dry side in the near term as well, with some spotty rain. Ethanol futures have edged back under the 1.49 mark, while margins remain positive, with blenders being boosted by unleaded values at the upper end of the range. The export wire has been quiet in recent days.
On the July chart we are below the 20-day at $3.92 with the 100-day at 3.80 remaining support.
SOYBEANS
Soybean trade is mixed with active two-sided trade so far during the day session with trade testing nearby support before bouncing. Meal is flat to 1.00 lower and oil is flat to 10 points higher, with crush margins narrowing again.
The recent pattern in South America should remain intact near term, allowing for greater progress in Brazil harvesting, with the stronger dollar and cheaper real encouraging sales and export business, while Argentina bought 130,000 metric tons of beans split between old and new crop from the US to extend coverage for crushers.
Trade will be looking for signs of additional acres, with the weather challenges rolling acres over from wheat and corn. Planting progress was 2%, same as average.
On the July contract, trade has slipped below the 50-day at $10.50, with the 100-day at $10.25 as the next level of support.
WHEAT
Wheat trade is 2 to 5 cents lower with steady conditions and the stronger dollar limiting upside with wheat grinding along in the lower end of the range. Warmer conditions coming should help the crop maturity catch up with the cool recent temps putting the crop behind.
Spring wheat growing areas look more open but have plenty of ground to cover. The weekly crop progress report left conditions unchanged at 37% poor to very poor, and 31% good to excellent, and 13% headed, vs. 19% on average. Spring wheat is 3% planted vs. 25% on average.
On the July Kansas City contract support is the 200-day at $4.96 below that with resistance the 20-day at 5.07, which we failed to hold to start the week.
