September Chicago wheat closed up 10 1/2 cents Wednesday, finding some support from a second heat wave in western Europe after prices tested their 100-day average on Tuesday. November soybeans were up 4 1/2 cents and December corn was down 3/4 cent after another day of light trading.
Flat to higher trade at midday after early gains fade.
Corn trade is 1 to 3 cents higher at midday with trade building on the reversal scored yesterday with support from soybeans and a drier near-term forecast. Trade has gotten fairly oversold with a positive finish needed today to build on the support found yesterday.
Higher temps look to return later in the week but nothing extreme with rainfall expected to be limited the next seven days for most. Ethanol margins remain under pressure with production down 27,000 barrels, and stocks 365,000 barrels higher. World feed grain harvest will keep exports limited in the near term. Basis has started to moderate in some areas as well with harvest starting in the SE U.S.
On the September nearby chart support is the fresh low at $4.18 with the 100-day below that at $4.04, with resistance the 50-day at $4.30, which we are tested overnight before fading.
Soybean trade is 6 to 9 cents higher with light buying resuming as trade talks with China begin again along with the forecast heading into August. Meal is flat to 1.00 higher and oil is 40 to 50 points higher.
World export demand remains slow, with the dollar keeping the U.S. at a disadvantage. The first chunk of trade aid was confirmed with a minimum payment of $15 per acre. Weather will come into focus more as we head towards August and podfill season.
The September chart support is the 50-day at 8.85, with the next level up the 100-day at 8.96 which we closed just below with the 10- and 20-day the next round at $8.99 which we are testing at midday, with 200-day at $9.16 the next level up.
Wheat trade is 2 to 8 cents higher at midday with trade finding support from the row crops along with harvest winding down. The Kansas City/Chicago spread is slightly wider this morning. The corn/HRW spread is back to 12 cents.
The warmer weather should allow harvest to progress to move to the home stretch for winter wheat with spring wheat just around the corner with mixed to good yields seen on the crop tour so far, while Europe makes progress with good yields in France, while the Black Sea and Russia continues to see mixed yields as harvest rolls on. The dollar is above 97 on the index with firmer action to open the week after the debt ceiling deal.
The September Kansas City chart support is the recent low at $4.26 with the first resistance the 10-day at 4.44, with the 100-day at 4.50 the next round up.