July corn closed up 11 cents Friday as the market bid front-month corn prices higher a second day. July contracts of soybeans and winter wheat were also higher on the day, facing adverse weather ahead, while spring wheat ended the day 3 cents lower.
Midday: Corn scores new highs, and leads at midday, yet again.
Corn trade is 4 to 9 cents higher with front-month trade leading as bull spreading continues with new highs scored for July and December with trade backing of the highs at midday. The forecast looks to continue the recent pattern into the next week, likely finishing late planting in some areas, especially east along with continuing to hinder logistics pushing the basis sharply higher as well.
Ethanol margins have remained stable with ethanol futures a dime higher this morning as well, with blender margins seeing the biggest squeeze this a.m. USDA announced sales of 125,613 metric tons to unknown.
On the July nearby chart, support is the 10-day at $4.26, with the upper Bollinger Band at 4.51 5/8, which we are above at midday.
Soybean trade is 4 to 7 cents higher with trade working higher again on acre concerns, and spillover support from corn with little fresh demand news with sales and cancelations. Meal is $1.50 to $2.50 higher, and oil is 15 to 25 points lower. Crush margins remain solidly positive overall with meal just above $320. South American currencies have firmed as they control the world export business, which remains limited with the swine fever demand losses.
Field work will likely be slowed again in many areas. The corn/soybean ratio has been more stable here as the last deciding days tick away. The daily wire had sales of 130,000 to China and unknown each, with 136,000 canceled by China.
The July chart support is the 50-day at $8.65, with next resistance the 100-day at 8.96, which we are just below.
Wheat trade is flat to 2 cents higher with trade trying to follow row crops as HRW harvest expands on the plains. The Kansas City/Chicago spread pushed to new highs at 67 cents with Kansas City gaining slightly this morning. The heavy rains are slated more for the north and east parts of the belt while harvest should build elsewhere, with maturity still lagging.
The dollar moved back above 97 on the index as well. Black Sea area weather remains mixed. Hard red wheat is working into feed rations in some areas with the bounce in corn values, and reduced quality may increase feeding on that front.
On the July Kansas City chart, support is the 100-day at $4.55. then the 10-day at 4.62, which we are above at midday with the upper Bollinger Band at $4.97 as resistance.