November soybeans were down 9 3/4 cents and September KC wheat was down 11 1/2 cents Tuesday as the early theme remains bearish for this week’s trade in grains and oilseeds. December corn ended up 3 1/2 cents after losing 28 1/2 cents the previous two days.
Midday: Soybeans and wheat are downside leaders at midday.
Corn trade is 1 to 2 cents higher with light two sided trade so far this morning with little fresh news The current weather pattern looks to continue for most of the belt in the short term.
Ethanol margins get a boost from the pullback, especially with the stronger energy complex with ethanol futures fading below $1.50 this morning, with blender margins getting the most help, along with big travel week for the holiday. Harvest will continue to expand in South America, with Black Sea conditions mixed along with China.
The weekly crop progress report showed conditions unchanged at 56% good to excellent, and 12% poor to very poor, with 94% emerged vs. 100% on average. On the September nearby chart support is at the $4.13 low printed this Monday, then the $4.10 50-day. Resistance is at the 20-day at $4.40.
Soybean trade is 8 to 10 cents lower with trade trying to find support after failing to hold the post-report gains amid little fresh demand news. Meal is 1.00 to $2.00 lower, and oil is 20 to 30 points lower. Crush margins remain solidly positive overall, with meal weakness continuing.
World export demand remains slow, with the real remaining near the upper end of the range but still cheap vs. the dollar. Late soybeans planting will be wrapping up. Trade talks have restarted but there is little to report, especially with the lack of swine fever demand hanging over the market.
Weekly crop progress had conditions on unchanged at 54% and 11% poor to very poor, with 92% planted vs. 100% on average with emergence at 83% vs. 92% on average. The September chart support is the 50-day at 8.75, and resistance the 100-day at 9.02.
Wheat trade is 6 to 11 cents lower with winter wheat harvest hitting full stride and creating harvest pressure with spillover from corn weakness. The Kansas City/Chicago spread is wider again during the day session, while the corn/HRW spread has moved back to its narrowest level as well.
The warmer weather should get combines moving more in the short term with above 90 degrees expected for the plains, along with heat in continental Europe. The dollar is above 96 on the index with the rally pausing again. Wheat will still work into cattle rations in the southern plains short term.
Weekly crop progress showed harvest at 30% vs. 48% on average, with 97% headed vs. 100% on average, with good to excellent at 63% and 11% poor to very poor, up 2 percentage points from last week, with spring wheat at 75% good to excellent, and 4% poor to very poor, unchanged with heading at 25% vs. 55% on average. On the September Kansas City chart, support is the fresh low at $4.32, with resistance the 50-day at 4.48.