Soybeans, Wheat Higher; Corn Lower at Midday
Corn is 2 to 3 cents lower, soybeans are 4 to 5 cents higher, and wheat is 3 to 9 cents higher.
The U.S. stock market is firmer with the Dow 400 points higher. The dollar index is 30 lower. Interest rate products are mixed. Energies are mixed with crude $1.00 higher. Livestock trade is weaker. Precious metals are firmer with gold up $6.00.
Corn trade is 2 to 3 cents lower at midday with range-bound action ongoing. Trade is fading back from the test of resistance Tuesday with weaker spread action Wednesday. The weekly ethanol report showed production edging higher, up 46,000 barrels per day, and stocks down 564,000 barrels per day. Warmer weather should return later this week with rain forecast. Rain moved west to the drier parts of the Corn Belt. On the July contract, support is the 20-day at $3.18, which we have held above this week, and the upper Bollinger band at $3.25, which we tested Tuesday but failed to hold above.
Soybeans trade is 4 to 5 cents higher at midday with range-bound action continuing with support from the better currency situation and easing of South American harvest pressure. Meal is $1.00 to $2.00 higher, and oil is 20 to 30 points higher. South America continues to move along harvest wise with strong shipments out of Brazil likely to continue unless port issues redevelop with the real solidly off the recent lows. The July soybean chart support is the lower Bollinger band at $8.29, with resistance the 20-day at $8.42, which we are back above overnight, then the upper Bollinger band at $8.56.
Wheat trade is 3 to 9 cents higher at midday with light buying as trade tries to reverse from recent selling as the Kansas wheat tour moves on. Spring wheat is leading with planting concerns. Russia looks to have mostly average rainfall near term with France and Germany drier near term. Better rains are on tap for much of the Plains. KC is at a 63-cent discount to Chicago on the July with slightly wider action Wednesday, while Minneapolis is back to a 10-cent premium. The July KC chart support is the lower Bollinger band at $4.40, which we tested overnight with resistance the 20-day at $4.72.