DTN Grain Midday: Grains Trending Higher

Photo: University of Arkansas

Corn is flat to 1 cent higher, soybeans are 1 to 2 cents higher, and wheat is 2 cents lower to 2 cents higher.

The U.S. stock market is mixed with the Dow 200 points higher. The dollar index is 29 higher. Interest rate products are firmer. Energies are weaker with crude $1.80 lower. Livestock trade is firmer. Precious metals are weaker with gold down $12.00.


Corn trade is flat to 1 cent higher at midday with trade remaining rangebound with little fresh news. Ethanol margins remain stable with more plants coming back online with demand improvements needing to be sustained with signs of a plateau in recent days with the report delayed until tomorrow. Wetter weather will persist in some areas into midweek before a warm up is expected. Basis has shown isolated signs of strength this week. Weekly crop progress had planting at 88% vs. 82% on average, with 64% emerged vs. 58% on average, and initial conditions at 70% good to excellent, and 5% poor to very poor. On the July contract support is the 20-day at $3.18, where we are tested and held, and the upper Bollinger Band at $3.23 as resistance.


Soybean trade is flat to 2 cents higher at midday with the reversal in the real sticking so far, but buying remains limited at the middle of the recent range. Meal is $1.00 to $2.00 lower and oil is 25 to 35 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 ral at multi-week highs, which crimps local prices a bit. Crush margins remain solid as well. Weekly crop progress showed planting at 65% vs. 55% on average, with emergence at 35% vs. 27% on average. The July soybean chart support is the 20-day at $8.42 with resistance the upper Bollinger band at $8.57.


Wheat trade is 2 cents lower to 2 cents higher with Kansas City trade leading at midday and little fresh news and oversold conditions. Russia looks to have mostly average rainfall near term with France and Germany drier near term with little change to the Plains forecast. Kansas City is at a 57-cent discount to Chicago on the July with narrower action so far, while Minneapolis is back to a 9 cent premium. Weekly crop progress showed heading at 68% vs. 72% on average, with 54% good to excellent, up 2%, and poor to very poor at 5%, while spring wheat is 81% planted vs. 90% on average, and 51% emerged vs. 65% on average. The July Kansas City chart support is the lower Bollinger Band at $4.33 which we tested last week before bouncing with resistance the 20-day at 4.65.

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