DTN Grain Midday: Soybeans on the Rise After Confirmed Trade with China

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Corn, Wheat Lower at Midday

Corn is flat to 1 cents lower, soybeans are 8 to 9 cents higher, and wheat is 2 to 8 cents lower.

The U.S. stock market is flat with the Dow 30 points higher. The dollar index is 40 points lower. Interest rate products are weaker. Energies are weaker with crude down $1.00. Livestock trade is mixed with cattle leading. Precious metals are firmer with gold up $2.00.

CORN

Corn trade is flat to 1 cent lower with light two-sided trade so far after few surprises on the crop progress report yesterday afternoon. Ethanol margins remain stable with unleaded demand holding the recent plateau with slower run rates at refineries expected to help keep supplies manageable. Warmer drier weather for most is expected for the bulk of the week before cooling next week. Basis has been mostly steady to start the week. Weekly crop progress showed planting at 93% vs. 89% on average, 78% emerged vs. 73% on average, and 74% good to excellent, up 4% and poor to very poor at 4%. On the July contract support is the 20-day at $3.19, and resistance the fresh high at $3.31.

SOYBEANS

Soybean trade is 8 to 9 cents higher at midday with trade getting confirmation of sales to China with 132,000 metric tons announced for new crop. Meal is flat to $1.00 higher, and oil is 20 to 30 points higher. The ral has gained against the dollar overnight as well getting to the best levels in weeks. South America continues to move along harvest wise with strong shipments out of Brazil likely to continue for the near term. Crush margins remain solid for the time being. Weekly crop progress showing 75% planted vs. 68% on average, 52% emerged vs. 44% on average, and initial conditions were 70% good to excellent and 4% poor to very poor. The July soybean chart support is the lower Bollinger Band at $8.29, and resistance the 20-day at $8.43 which we are just above at midday, with the upper Bollinger Band at $8.56 the next round up.

WHEAT

Wheat trade is 1 to 8 cents lower with trade selling off with better near term Euro and Russia forecasts along with mixed wheat conditions and the beginnings of harvest. The plains look to trend warmer and drier to push the crop along this week. Kansas City is at a 58-cent discount to Chicago on the July with wider action so far, while Minneapolis is back to a 8 cent premium. The dollar is scoring new lows again this morning, and further weakness likely adds support with Black Sea origin still winning nearby tenders. Weekly crop progress showed winter wheat 77% headed vs. 81% on average, with harvest 3% complete vs. 2% on average, with good to excellent down 2% to 51% good to excellent, and 19% poor to very poor. Spring wheat was 91% planted vs. 96% on average, and 67% emerged vs. 80% on average, with 80% good to excellent, and 2% poor to very poor. 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 4.60 which have faded back from during the day session.

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