Corn, Wheat Higher at Midday
Corn is 6 to 7 cents higher, soybeans are 4 to 6 cents lower, and wheat is 6 to 9 cents higher.
The U.S. stock market is firmer with the Dow 130 points higher. The dollar index is 46 points lower. Interest rate products are weaker. Energies are weaker are weaker with crude $0.20 lower. Livestock trade is weaker with hogs the downside leader. Precious metals are firmer with gold down $7.00.
Corn trade is 6 to 7 cents higher higher at midday with trade pushing to new highs for the move with stronger spread trade this a.m. with support from the weaker dollar and short covering. The weekly ethanol report showed production up 61,000 barrels per day, with stocks down another 450,000 barrels but the demand recovery continues to show signs of plateauing. Wetter weather will persist in some areas into midweek before a warm-up is expected. Basis has shown isolated signs of strength this week. Export sales will be delayed until Friday because of the holiday on Monday. On the July contract support is the 20-day at $3.18 which we are tested and held, and the upper Bollinger Band at $3.23 as resistance which we are above at midday.
Soybean trade is 3 to 5 cents lower at midday with rangebound action continuing as the ral slides in tandem with the dollar this a.m., and China tensions rise yet again. Meal is $1.00 to $2.00 higher, and oil is 40 to 50 points lower. South America continues to move along harvest wise with strong shipments out of Brazil likely to continue unless port issues redevelop due to strikes or virus related absenteeism. Crush margins remain solid for the time being. The July soybean chart support is the 20-day at $8.43 with resistance the upper Bollinger band at $8.57.
Wheat trade is 7 to 11 cents higher at midday with Kansas City action leading again overnight with support from the dollar sliding below 99 on the index, and little change to the forecasts. Russia looks to have mostly average to slightly above rainfall near term with France and Germany drier near term. Kansas City is at a 52-cent discount to Chicago on the July with narrower action so far, while Minneapolis is back to a 9 cent premium. The July Kansas City chart support is the lower Bollinger Band at $4.32 which we tested last week before bouncing with resistance the 20-day at 4.64.