Mixed midday trade as early gains fade.
Corn is flat at midday with early gains fading ahead of the September contract going into delivery and continued short-term oversold conditions. 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 been stable this week, with hints of presidential action on the recent waivers with announcement expected in September. Basis remains mixed to firmer overall with harvest getting closer but still too far away in some areas. The weekly export sales showed improvement at -2,500 metric tons of old crop, and 858,900 metric tons of new crop.
On the December, nearby chart support is likely the $3.64 1/4 low with the lower Bollinger Band at $3.47 below that with resistance the 10-day at $3.71, which we are just above at midday, with the 20-day the next round up at $3.85.
Soybean trade is 4 to 6 cents higher at midday with trade finding spillover support from the corn action, and improving short-term technical action. Meal is flat to $1.00 lower, and oil is 5 to 15 points higher. 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 real 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.
Weekly export sales remained soft at 95,200 metric tons of old crop, 353,100 of new crop, 52,600 metric tons of old meal, 353,100 of new meal, and 10,200 of combined oil.
November chart support is the lower Bollinger Band at $8.54, with the next round up the 10-day $8.67, which we are above at midday, with the 20-day just above the market at $8.72.
Wheat trade is 2 to 6 cents lower in quiet midday trade, continuing the recent pattern of weaker overnight action, with spring wheat harvest pressure building. The KC/Chicago spread is at 72 with back and forth trade continuing in the spread on the December. The corn/HRW spread is narrower, back to 30 cents.
KC wheat is now back to competitive on the world market trading as well as into feed rations, although that has faded in recent days with pressure in European values post harvest. 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 weekly export sales were good at 661,700 metric tons..
The December KC chart support is the new low at 3.92 with the first resistance the 10-day at $4.02 which we are just below, and the 20-day at $4.15.
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 mostly higher. Precious metals are mixed with gold 3.00 lower.