Trade is higher across the board at midday.
Corn trade is 6 cents higher at midday with buying returning one the market illustrated it had support last night. Soggy conditions for much of the belt are viewed as friendly.
Ethanol margins are not getting help with corn and energies both up this morning but ethanol lagging. The heavy rains over much of the belt will slow replanting efforts with cools temps limiting crop development in the near term. Basis has remained steady to firm in the recent days.
On the July chart, we are now back just above the $3.69 area where most of the major moving averages are clustered, with the 100-day at $3.73 still functioning as resistance for now.
Soybean trade is 5 to 10 cents higher at midday with trade finding some footing after the sharp selloff tied to the Brazilian President getting snared in another corruption scandal, which sent the real tumbling and induced farmer selling in Brazil.
The real has rebounded off the lows, but significant bushels moved into the export channels yesterday. Meal is $1 to $2 higher, and oil is 30 to 40 points higher.
US basis should stay steady for the moment, with the sharp setback in futures values slowing movement. July beans have support at the longer term low of $9.40, with the weekly low of $9.42 just above that, with resistance at 10-day moving average of $9.65.
Wheat trade is 5 to 10 cents higher at midday with trade working to build on the firmer action through midweek, with the sharply lower dollar adding support this morning.
Storms continue to work through the western belt, with additional rain raising the specter of more quality concerns. Early harvest has been lower yields and protein than expected. The dollar is back to the lowest levels since the election with trade testing 97 on the index.
On the July KC contract support is at the recent low of $4.20, with major support at the $4.11 contract low printed a month ago. The 10-day at 4.34 is chart resistance, which we are just above.