Row crops turn positive at midday.
Corn is flat to 2 cents higher with trade working to score a reversal as the September contract moves towards delivery with oversold conditions still in place. Weather should continue to remain a short-term non-issue with continued cool weather the biggest concern at this point as we move towards September.
Ethanol margins remain poor but have seen a little bump after production came in 15,000 barrels per day higher, with stocks 358,000 barrels lower on the week, pushing futures back to 1.33. Basis remains mixed to firmer overall with harvest getting closer but still too far away in some areas.
On the September nearby chart support is likely the $3.55 1/4 low with the lower Bollinger Band at $3.36 below that with resistance the 10-day at $3.61.
Soybean trade is narrowly mixed at midday with trade holding the lower end of the range with two-sided trade so far. Meal is flat to $1.00 higher and oil is flat to 10 points lower. Crush margins remain positive overall, with oil staying towards the upper end of the range, and meal finding support at $289 again.
Basis remains flat overall. The Brazilian ral has continued to grind lower with local prices rising as stocks tighten and dry conditions are in place ahead of planting season. The weather looks to be a short-term non-issue for soybeans as well coming forward with maturity remaining the biggest concern.
September chart support is the lower Bollinger Band at $8.40, with the next round up the 10-day $8.54.
Wheat trade is 3 to 6 cents lower with winter wheat giving back the late -day gains overnight with cheaper world prices on the most recent round of tenders. The Kansas City/Chicago spread is at 79 with back and forth trade continuing in the spread. The corn/HRW spread is narrower, back to 31 cents.
Kansas City wheat is now back to competitive on the world market trading as well as into feed rations, although that has faded in recent days. Spring wheat harvest is trying to play catch up with the slow start in the northern hemisphere. The dollar remains near the upper end of the range, with choppy trade ongoing.
The September Kansas City chart support is the new low at $3.80 3/4 with the first resistance the 10-day at $3.90 which we are just below overnight, and the 20-day at $4.00.
The U.S. stock market indices are firmer with the Dow 195 higher. The dollar index is 15 points higher. Interest rate products are weaker. Energies are firmer with crude up $1.10. Livestock trade is mixed. Precious metals are mixed with gold $5.00 lower.