Corn is flat to 1 cent lower, soybeans are 2 to 4 cents higher, and wheat is 1 cent lower to 3 cents higher.
The U.S. stock market is mixed with the Dow down 125 points. The dollar index is 5 points higher. Interest rate products are mixed. Energies are mixed with crude flat. Livestock trade is firmer. Precious metals are mostly higher with gold up $25.
Corn trade is flat to a penny lower at midday with trade remaining on the summer lows with favorable weather, and further new crop sales of 114,300 metric tons sold to Mexico. Ethanol margins are a little narrower with the weakness in energies and the end of summer driving season looming. Basis has remained fairly flat in recent days, with isolated pockets of pre-harvest strength. On the September contract, trade continues to have resistance at the gap level from earlier in the month at $3.36, with chart support at the lower Bollinger Band at $3.13.
Soybean trade is 2 to 4 cents higher at midday with light buying as the August contract enters delivery with rumors of more export business getting done. Meal is narrowly mixed and oil is 30 to 40 points higher. Demand will need to be the driver of rallies with weather threats limited.
The ral remains at the upper point of the recent range vs. the dollar, which should keep new crop interest robust. USDA also announced 222,000 metric tons of soymeal to Philippines. The September chart now has resistance at the 20-day at 8.90 which we are testing at midday, and support the lower Bollinger Band at 8.74.
Wheat trade is 1 cent lower to 2 cents higher at midday with trade finding light buying as the back and forth pattern continues with primary support from the weaker dollar and the end of harvest pressure. The ruble is losing ground, but harvest will keep bushels moving out of the Black Sea area short term with added acres offsetting yield trends in spots. Kansas City is at a 91-cent discount to Chicago with spreads back to the top end of the range, while Minneapolis is back to a 22 cent discount with slight weakness in the intermonth spreads. Kansas City September chart support is the recent low at $4.23 3/4, with the 20-day back above the market as nearby resistance at $4.45, which is we are just below this morning.