July contracts of corn, soybeans and all three wheats started the day higher, but finished lower as traders pulled back from new highs in front of a three-day weekend. The June U.S. dollar index was down 0.20 and June gold was higher after President Trump cancelled the June 12 meeting with North Korea.
Midday: Wheat is firmer at midday, corn and beans are back to mixed after some new highs for the move.
Corn trade is mixed at midday with trade 3 to 4 cents off our highs, but we are holding gains coming into today. Warm weather should dominate the week, with rain coverage looking better for the west, and better for the second week out with some model disagreement.
The second crop areas of Brazil are trending back drier in the near term with some storm damage. Ethanol margins have narrowed with the energy complex backing off the highs, along with the new corn highs, but ethanol futures have been able to top $1.53 this morning.
Weekly export sales were decent at 854,300 metric tons of old crop, and 273,400 of new crop. On the July chart we moved back above the 20-day at $4.01 with the next level of support is 50-day at 3.95 which we tested to start the week, with resistance at the fresh high at $4.12 1/4.
Soybean trade is 2 cents lower to 2 cents higher at midday with trade testing the 10.60 area on the November contract overnight. Meal is $2 lower and oil is 10 to 20 points higher.
Trucker strikes are disrupting logistics in South America as harvest winds down, and China was booking late-summer soy cargoes off the West Coast adding support as well with sales of 264,000 metric tons of new crop announced as sold to unknown. Crush margins have narrowed but remain positive, with meal starting to find buyers again with trade $10 off the lows but struggling to hold gains.
Weekly export sales were disappointing at -135,900 metric tons of old crop, and -6,900 of new, 239,500 of meal, -42,600 of new meal, and 17,700 of oil. On the July chart, trade finished just above the 50-day at $10.38, with the upper Bollinger Band at 10.64 the next level of resistance.
Wheat trade is 6 to 11 cents higher at midday with trade looking to extend the gains seen this week amid the stronger grain trade and demand along with the continuing weather issues.
Warmer weather should help to boost maturity with the crop still behind normal, but catching up with another week of heat likely to add stress to the heading crop. Some better rain potential was showing for Kansas in the overnight forecast but it is getting late to matter. Spring wheat should see better progress with warmer weather helping to catch up emergence.
The Black Sea area will continue to dominate export trade with weather issues limited for the moment but some dryness so far with concerns starting to build, but better rains forecasted for the spring wheat areas. Black Sea values are at $205 a ton. India is raising import tariffs as well.
Weekly export sales were in line with recent weeks at 112,300 of old, and 340,000 of new. On the July Kansas City contract support is the 20-day at 5.33, with the upper Bollinger Band at 5.65.