Corn, soybeans, and all three wheats were higher Friday with July winter wheat contracts leading the way to their highest closes in three months. In spite of this week’s wetter forecasts, December corn showed only a modest loss for the week while November soybeans finished with a slight gain.
Midday: Wheat leads row crops higher at midday.
Corn trade is 2 cents higher at midday with light two-sided trade so far but momentum seems up. The weather pattern looks to bring more rain but heat could return in the second week depending on what model is favored with coverage models varying.
Adding some weather premium ahead of a summer weekend is what we seasonally can see this time of year, and today appears to be that unless we see a significant change in the noon forecasts. Ethanol margins are still under pressure with corn higher at midday.
On the July corn contract support is at the 20-day of $3.76 with resistance at the $3.87 upper Bollinger Band.
Soybean trade is 1 to 2 cents higher at midday; futures have seen active two-sided trade on the session. Meal is $1 lower and bean oil is 30 points higher at midday. South America should continue to push bushels into the world export market with soybean harvest in the rear view mirror now for Argentina.
NOPA crush came in 5.25 million bushels higher than expected with soy oil stocks lower with world palm oil prices firming as well. Rains should help to even out struggling stands in some spots but the market viewpoints are mixed on longer-term weather items.
July beans have major support at the $9.09 1/2 14-month low, with the 20-day at $9.33 nearby support with resistance the 50-day at $9.51.
Wheat trade is 6 to 12 cents higher at midday with the Chicago and Minneapolis showing the most strength. Winter wheat harvest continues to expand in Kansas with most of the action still south of I-70 with storms once again hitting unharvested wheat areas Thursday night.
Protein will continue to be a major driver coming forward with the line between milling and feed wheat important with early protein running on the light side but generally making the lower end of the standards with SW Kansas being on the light side this week.
Western Europe looks to be warmer and drier in the near term as well with some improvement in the Black Sea area with production estimates just below the record from last year. The dollar has firmed off the lows but the larger down trend still looks to be intact.
On the July Kansas City contract support is the 200-day at $4.50 with resistance the recent high at $4.76.