Grains Mixed at Midday Friday
Corn futures are flat to 1 cent lower, soybean futures are 1 to 2 cents higher, and wheat futures are 3 to 8 cents lower.
The U.S. stock market is weaker with the Dow 130 points lower. The U.S. Dollar Index is 42 higher. Interest rate products are firmer. Energies are weaker with crude 1.10 lower. Livestock trade is mixed. Precious metals are mixed with gold up 11.00.
Corn futures are flat to 1 cent lower at midday with rangebound action on currency headwinds and little fresh news into the long weekend. Ethanol margins remain stable with more plants coming back online and better demand likely for Memorial Day weekend, even if well short of normal. Wetter weather will persist in some areas through the weekend. On the July contract, support is the 20-day moving average at $3.17 which we are testing this morning, and the upper Bollinger band at $3.25 which we tested Tuesday but failed to hold above.
Soybean futures are 1 to 2 cents higher with two-sided trade early as the real holds gains against the dollar but other news remains limited. Meal is $2.00 to $3.00 higher and oil is 35 to 45 points lower. South America continues to move along harvest-wise with strong shipments out of Brazil likely to continue unless port issues redevelop. Crush margins remain stable as well with meal regaining the lead Friday. The July soybean chart support is the lower Bollinger band at $8.27, with resistance the 20-day moving average $8.42.
Wheat futures are 3 to 8 cents lower with pressure from the stronger dollar and limited overall buying. 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. The Kansas wheat tour wrapped up with projections a bit under the USDA numbers. KC is at a 63-cent discount to Chicago on the July with slightly wider action Friday, while Minneapolis is back to a 7-cent premium. The July KC chart support is the lower Bollinger band at $4.37 which we tested Wednesday before bouncing with resistance at the 20-day moving average at 4.70.