Corn, Beans Lower at Midday
Corn is 3 to 4 cents lower, soybeans are 4 to 6 cents lower, and wheat is 1 to 6 cents higher.
The U.S. stock market is weaker with the Dow 190 points lower. The dollar index is 20 points lower. Interest rate products are firmer. Energies are mixed are weaker with crude unchanged. Livestock trade is weaker with cattle the downside leader. Precious metals are firmer with gold up $21.00.
Corn trade is 3 to 4 cents with trade holding gains from the rally yesterday as we look to consolidate into a higher range with pressure from trade concerns and spillover from soybeans. Ethanol margins remain stable with unleaded demand holding the recent plateau. Warmer drier weather for most is expected into next week. Basis has shown isolated signs of strength this week. Export sales were softer at 427,200 metric tons old crop, and 46,500 of new. The USDA announced 101,600 metric tons sold to unknown on the daily wire. On the July contract support is the upper Bollinger band at $3.24, and resistance the fresh high at $3.31.
Soybean trade is 3 to 5 cents lower at midday with rangebound action continuing as the ral slides in tandem with the dollar this AM, and China tensions remain at the forefront. Meal is $1.00 to $2.00 lower, and oil is flat to 10 points higher. 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. Export sales were softer from last week, at 644,300 metric tons of old crop, 203,000 metric tons of new crop, 127,000 of meal, and 56,600 of oil. The USDA also announced 132,000 metric tons of soybeans split between crop years sold to China. The July soybean chart support is the 20-day at $8.43 which we are testing this AM with resistance the upper Bollinger Band at $8.57.
Wheat trade is 1 to 7 cents higher with Kansas City trade leading again as the dollar tests 98 on the index. Russia looks to have mostly average to slightly above rainfall near term with France and Germany drier near term, while the plains look to trend warmer and drier. Kansas City is at a 49-cent discount to Chicago on the July with narrower action so far, while Minneapolis is back to a 1 cent premium. Export sales were solid at 209,800 metric tons old crop, and 465,900 metric tons. 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 which we are above at midday.