Corn is 3 to 4 cents higher, soybeans are 1 to 2 cents higher and wheat is flat to 7 cents higher. Outside markets are mixed.
Corn trade is 3 to 4 cents higher at midday with light short profit-taking developing after the heavy selling this week along with the lack of trade progress. Cooler weather looks to prevail, for the most part, as we head into August with mixed rains. Ethanol margins remain poor with stocks continuing to balloon, which will likely idle more plants in the near term with ethanol futures edging slightly higher this morning.
Basis has started to steady after the recent weakness in some areas, as well, with harvest starting in the Southeastern U.S. Softer spreads took Sept to Dec back to a dime before narrowing slightly this morning.
On the September nearby chart, support is the lower Bollinger Band at $3.93, then the $3.87 1/4 two-and-a-half-month low. Resistance is at the 200-day at $4.00, which we tested this morning.
Soybean trade is 1 to 3 cents higher at midday with trade following the lead of the corn after the washout through midweek. Meal is flat to $1.00 higher, and oil is 20 to 30 points higher, with crush margins still steady and oil leading vs. meal.
World export demand remains slow, with the dollar keeping the U.S. at a disadvantage with the real tracking lower with the dollar. Trade progress looks to be at a standstill again, which will make the secondary trade payments more likely.
Weather will come into focus more as we head into August and pod-fill season with immediate stress looking more limited due to an expected cool down. The slowness of the crop should continue to garner some light concern in the marketplace with more susceptibility to damage if an early frost would occur.
The September chart support is the fresh low at $8.50, with the next level up the 10-day at $8.81.
Wheat trade is 1 to 8 cents higher at midday with Chicago trade gaining sharply during the day session with the other contracts lagging. The KC/Chicago spread has narrowed to 66 cents with a nickel swing this morning. The corn/HRW spread is back to 22 cents. Chicago trade is down to 2 cents of carry with the intra-month spreads firmer today.
Winter wheat harvest is entering the final stages with spring wheat still a little off from hitting full swing with South Dakota rains slowing things, while Europe and the Black Sea continues to make progress with the strong ruble hindering Russia. The dollar is just about a full point off Thursday’s new high.
The September KC chart support is the recent low at $4.13 1/2 with the first resistance the 10-day at $4.30, with the 20-day at $4.38 the next round up.
The U.S. stock market indices are weaker with the Dow 260 lower. The dollar index is 25 lower. Interest rate products are weaker. Energies are firmer with crude $1.40 higher. Livestock trade are mostly lower. Precious metals are mixed with gold $24.00 higher.