Corn futures are 4 to 11 cents higher at midday Friday; soybean futures are 19 to 33 cents higher; wheat is 23 to 29 cents higher.
Corn futures are 4 to 11 cents higher at midday with firmer spread action ahead of the WASDE release at 11 a.m. CDT with further consolidation in the upper end of the range and fresh highs scored in July and December. The April WASDE report is expected to show domestic corn carryout at 1.415 billion bushels (bb) versus 1.440 bb last month, with world stocks and South American production little changed.
Ethanol margins will remain tight until further stock draws from better demand and/or exports can materialize. Corn planting should continue to move along at a normal pace with double crop in Brazil continuing to develop well with CONAB edging production estimates past 115.6 million metric tons (mmt) from 112.39 mmt the month prior On the July contract chart, we have support at the 20-day moving average at $7.29 with resistance at the new contract high of $7.61 printed Friday morning.
Soybean futures are 19 to 33 cents higher at midday with trade continuing to push back towards the upper end of the range to defend acres with firmer spread trade. Meal is $7.50 to $8.50 higher and oil is 105 to 115 points higher. On the WASDE report, trade is expecting domestic carryout at 262 million bushels (mb), down slightly from last month, with world numbers edging lower on weaker Brazil and Argentina production.
South American harvest will continue to push forward with early planting still a bit off in the U.S. Crush margins will need one of the products to step forward and support margins with both well off the highs and energies limiting oil upside in recent days. On the July soybean chart, we have resistance at the 20-day moving average of $16.38, which we are well back above at midday. Support is at the $16.05 50-day moving average, then the low printed Sunday night at $15.60.
Wheat futures are 26 to 32 cents higher at midday with trade working to consolidate the early week rebound into the weekend with broad buying reemerging into the day session. The poor early winter wheat crop ratings should limit downside this week with the western Plains seeing stressing wind to close the week. The WASDE report is expected to show carryout at 656 mb, up just slightly from last month with world stocks similarly unchanged.
The Plains could see some short-term relief in the northern growing areas, but the extended forecast looks like it remains dry. On the KC July chart, the 20-day moving average at $10.75, which we continue to trade just above, is support; then the lower Bollinger Band at $10.10. Resistance is at the $11.00 1/4 high printed Tuesday, then the $11.38 1/4 upper Bollinger Band.
The U.S. stock market is mixed with the Dow 220 points higher. The U.S. Dollar Index is 6 points higher. Interest rate products are mostly weaker. Energies are narrowly mixed with crude flat and natural gas lower. Livestock trade is mostly higher. Precious metals are higher with gold up 10.00.