Early gains fade to broadly lower trade at midday.
Corn trade is 3 to 5 cents lower at midday with failing to hold early gains as soybeans sink again. Harvest should continue to expand in the double-crop areas of Brazil with open weather continuing, while Black Sea area corn remains mostly dry. U.S. weather looks to remain wet in the near term, with heat still showing in the extended forecast.
The weekly ethanol report showed production up 11,000 barrels, with stocks down 527,000 barrels, with ethanol futures edging higher, and with blender margins remaining strong. Basis has been flat to firmer in recent days with the lower board.
On the July chart we remain below the 10-day, at $3.66 which is now nearby resistance and then the 200-day at $3.82. Nearby support is the $3.38 3/4 fresh low from yesterday.
Soybean trade is 6 to 9 cents lower at midday with initial strength fading again during the day session as trade concerns remain in place. Meal is $4.50 to $5.50 lower and oil is 45 to 55 points higher. Bean basis has remained steady to firmer, with trade likely to remain quiet in the near term as old crop exports remain slow with Brazilian values remaining strong on the anticipation of future business.
Widespread rains should boost near term growth. Brazil continues to struggle with the logistical issues compounded by the trucker strikes with a large shipping line up.
On the July chart, trade has support at the fresh low at 8.41, and resistance the 10-day at $9.30.
Wheat trade is flat to 4 cents lower with harvest pausing for rains, while weather concerns build in Russia with the initial overnight strength failing to hold again. Wet weather for Kansas should slow harvest in the next week or so, with good overall progress so far, and heat returning next week to finish harvest.
Spring wheat should see good progress with Canada remaining drier. Australia should see some improvement but overall remains mixed. Russian winter wheat is likely to remain on the dry side, with the spring wheat cool and wet with growing concerns there. HRW basis has remains solid ahead of the anticipated harvest protein improvement and board weakness.
On the July Kansas City is back below all the major moving averages with the 200-day at $4.96 the closest to the market, and $4.71 becoming support as the fresh low.
The U.S. stock market indices are mixed with the Dow down 55 lower. The interest rate products are firmer. The dollar index is 20 points lower. Energies are mixed with crude up $1.00. Livestock trade is mostly lower. Precious metals are lower with gold down $2.70.