All Grain Higher at Midday
Corn is 3 to 4 cents higher, soybeans are 7 to 8 cents higher, and wheat is 2 cents lower to 2 cents higher.
The U.S. stock market is higher with the Dow 350 points higher. The dollar index is 54 points lower. Interest rate products are weaker. Energies are firmer with crude up $0.50. Livestock trade is firmer with cattle leading. Precious metals are firmer with gold up $7.
Corn trade is 2 to 3 cents higher at midday with the forecast adding support after the end of the week selling going into the weekend as we get closer to pollination but trade has not held the overnight highs. The forecast has warmer temps and spotty rain for most into mid-July. Ethanol margins are expected to see pressure with gasoline demand still soft.
Weekly export inspections were OK at 962,445 metric tons with two sales on the daily wire with Mexico buying 182,200 metric tons, and China buying 202,000 metric tons of new crop. Weekly crop progress is expected to show steady conditions and silking near to slightly above average. On the September contract, support is the 20-day at 3.34 with resistance the $3.53 3/4 highs.
Soybean trade 7 to 9 cents higher at midday to open the week with support from weather, and the cheaper dollar to boost demand. Meal is $1.50 to $2.50 higher and oil is 40 to 50 points higher. The ral is up slightly against the dollar, and at the midpoint of the recent range. Crush margins have seen little change in recent days. Drier weather into mid-month will add support but we remain a ways from the key podfill time frame.
Weekly export inspections improved but remain soft at 521.638 metric tons, with weekly crop progress expected to show emergence complete, and blooming just above normal with steady to slightly lower conditions. The USDA announced 264,000 metric tons of beans sold to China for old crop. The August soybean chart resistance is the $9.03 fresh high, with support the upper Bollinger band at $8.94.
Wheat is 2 cents lower to 2 cents higher with winter wheat harvest moving towards the back half of the run, while Russian harvest will continue to expand. The ruble remains in the recent range vs. the dollar with U.S. export competitiveness improved with the sharp break in the dollar. Kansas City is at a 54-cent discount to Chicago on the August, while Minneapolis is back to a 22 cent premium.
Weekly export inspections were soft at 326,488 metric ton range. The September Kansas City chart support is the lower Bollinger Band at $4.22, and resistance the 20-day at $4.45.