Soybeans and Chicago wheat lead broadly firmer midday trade.
CORN
Corn trade is 4 to 5 cents higher at midday with buying on dryness in the Eastern Corn Belt as we head towards Monday’s report. Cooler weather and mixed rain amounts look to continue short term with the extended forecast warming again with parts of the I-States looking more short changed.
Ethanol margins remain poor with more stock draws needed to heal margins with ethanol futures able to follow corn higher this morning. Basis has started to steady after the recent weakness in some areas as well with harvest starting in the SE U.S. with spreads firming slightly. Weekly export sales remain poor at 42,600 metric tons of old crop, and 197,000 of new crop.
On the September nearby chart support is the 10 and 100-day at $4.06-7 and then the 200-day at $4.00. Resistance is at the 20-day at $4.18.
SOYBEANS
Soybean trade is 14 to 17 cents higher at midday with buying on weather concerns and oversold conditions. Meal is $2.00 to $3.00 higher and oil is 60 to 70 points higher. World export demand remains slow, with the U.S. disadvantage persisting on the currency markets, with South American prices supported ahead of planting. The USDA did announce the sale of 135,000 metric tons of new crop meal to the Philippines.
Weather will come into focus more as we head towards August and pod-fill season with immediate stress looking more limited with the expected cool down and dryness an issue in some areas. Weekly export sales were mixed with 101,700 metric tons of old crop, 318,300 of new, old meal was 92,200, new was 18,600 with oil strong at 31,900 of old crop, and 8,900 of new.
The September chart support is the lower Bollinger band at $8.42, with the next level up the 10-day at 8.66, which we are above at midday with the next level of resistance the 20-day at 8.82.
WHEAT
Wheat trade is flat to 14 cents higher with Chicago trade breaking through the $5.00 area while the higher protein wheats lag on the spread trade. The Kansas City/Chicago spread has made new highs at 80 cents, with an 17 cent swing the last two sessions. The corn/HRW spread is back to 9 cents. Chicago Sep-Dec is closing back in on even trade again.
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 in the short term, while Europe and the Black Sea continues to make progress with the strong ruble hindering Russia with exports slowing from July along with production estimate reductions, while the dollar elevated overall vs. most currencies. Weekly export sales showed improvement at 487,700 metric tons.
The September Kansas City chart support is the recent low at $4.10 1/4 with the first resistance the 10-day at 4.25, with the 20-day at 4.33 the next round up.
General Comments
The U.S. stock market indices are firmer with the Dow 250 higher. The dollar index is 2 lower. Interest rate products are firmer. Energies are sharply higher with crude $1.60 higher. Livestock trade are mostly higher. Precious metals are mixed with gold $10.00 lower.
