Corn and wheat near flat at midday, soybeans weaker.
Corn trade is mixed with the short-to-medium-term weather looking to work warmer and drier, while trade is working to build on the rebound from Wednesday with plenty of production concerns still around. The current weather pattern looks to continue with moisture around with heat that should help crop development, even as it remains way behind.
Ethanol margins have improved slightly, with ethanol futures working back to $1.54 this morning. Harvest will continue to expands in South America, with Black Sea conditions mixed along with China. Basis remains very strong across a variety of areas. Weekly export sales were inline with expectations at 175,600 metric tons old crop, and 156,300 new crop.
On the September nearby chart support is at the $4.13 low printed this Monday, then the $4.11 50-day. Resistance is at the 10-day at $4.39 which we tested this a.m.
Soybean trade is called 9 to 11 cents lower with trade still working to build back support from the recent break with little fresh news and waning export competitiveness. Meal is $2.00 to $3.00 lower and oil is 15 to 25 points lower.
Crush margins remain solidly positive overall with oil still holding the recent lead. World export demand remains slow, with the real remaining near the upper end of the range but still cheap vs. the dollar, especially with the recent dollar rally. Late soybean planting is likely complete except for some double crop.
Weekly export sales were improved at 867,600 metric tons old crop, 161,500 new crop, 16,800 of old meal, 8,600 of new, and 19,200 of oil. The September chart support is the 50-day at 8.75, and resistance the 100-day at 9.02.
Wheat trade is flat to 8 cents lower with harvest pressure battling with oversold conditions along with mixed world concerns. The Kansas City/Chicago spread remains near highs with harvest pushing HRW feed usage, along with scarce milling wheat with the growing conditions in some areas.
The wheat/HRW spread is has traded down to a nickel today. 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 picking up again. Wheat will still work into cattle rations in the Southern Plains short term with some discounts moving towards 25 cents or better.
Weekly export sales were a bit soft at 276,500 metric tons. On the September Kansas City chart support is the fresh low at $4.32, with resistance the 50-day at 4.48.