Corn is 1 to 2 cents higher, soybeans are 2 to 3 cents higher and wheat is 3 cents to 6 cents higher. Outside markets are mixed.
CORN
Corn futures are 1 to 2 cents higher at midday after mixed action overnight up until midday. Cooler weather looks to prevail for the most part, as we head into August. Ethanol margins remain under pressure with more plants starting to be idled again; futures are back to 1.50 a gallon with summer driving season on the downhill slide.
Basis has started to soften in some areas as well with harvest starting in the Southeast U.S. and softer spreads taking the Sep-Dec spread back to a dime. Weekly export inspections remained soft at 645,367 metric tons. The weekly crop progress report is expected to show steady conditions with maturity still well behind normal.
On the September nearby chart, support is the fresh low at $4.12 with the 100-day below that at $4.05; resistance is the 10-day at $4.25 with oversold conditions still in place.
SOYBEANS
Soybean futures are 1 to 3 cents higher at midday with early buying fading again, continuing the recent trend as trade talks resume this week. Meal is .50 to 1.50 higher and oil is narrowly mixed. World export demand remains slow with the dollar keeping the U.S. at a disadvantage.
The first chunk of Market Facilitation Payments trade aid was confirmed with a minimum of $15 payment per acre and none expected for 2020 per Ag Secretary Sonny Perdue; the first payments go out in August and signup opened Monday. Weather will come into focus more as we head towards August and pod fill with immediate stress looking more limited with the expected cool down. The Brazilian real remains very cheap relative to the dollar.
Weekly export inspections were good at 1.031 million metric tons. Weekly crop progress should show steady conditions will maturity still well behind normal. The September chart support is the lower Bollinger band at 8.77, with the next level up the 100-day at 8.94, with 200-day at $9.15 the next level up.
WHEAT
Wheat futures are 2 to 6 cents higher overnight with Minneapolis leading amid light buying. The KC/Chicago spread has widened during the overnight again, back out to the recent highs near 66 cents. The corn/HRW spread is back to 20 cents.
Winter wheat harvest is entering the final stages with spring wheat still a little off from hitting full swing; Europe and the Black Sea continue to make progress. The dollar is near the highs for the year, limiting U.S. competitiveness on the world market.
The weekly export inspections were disappointing at 390,370 metric tons. Monday’s crop progress should show spring wheat conditions likely to be steady and winter wheat harvest passed 80%.
The September KC chart support is the recent low at $4.26 with the first resistance the 10-day at 4.38, which we are just below overnight, with the 100-day at 4.49 the next round up.
General Comments
U.S. stock market indices are mixed with the Dow 70 higher. The U.S. dollar index is 24 higher. Interest rate products are mixed. Energies are flat with crude .10 higher. Livestock trade is mostly lower. Precious metals are narrowly mixed.
