DTN Grain Midday: Grains Higher

On-farm storage bins. Photo by Mike Staton, Michigan State University

Corn is 4 to 5 cents higher, soybeans are 11 to 12 cents higher, and wheat is 7 to 17 cents higher

The U.S. stock market is flat with the Dow unchanged. The dollar index is 44 points lower. Interest rate products are weaker. Energies are mixed with crude down $0.60. Livestock trade is mixed with cattle leading. Precious metals are higher with gold up $11.

CORN

Corn trade is 4 to 5 cents higher with trade following soybeans and wheat higher with good spread strength. Ethanol margins remain stable with improvements in driving demand so far this week and a mostly steady energy complex. Warmer, drier weather for most of the Corn Belt is expected for the bulk of the week before cooling next week. The West is expected to stay dry. Basis has been mostly steady to start the week. Weekly export sales were OK at 637,500 metric tons of old crop and 27,500 of new. On the July contract, support is the 20-day at $3.20 and resistance the fresh high at $3.31.

SOYBEANS

Soybeans trade is 11 to 12 cents higher at midday with the weaker dollar continuing to add support amid the constant back and forth on sales and cancellations. Another 120,000 metric tons of sales were confirmed to unknown. Meal is $4.00 to $5.00 higher, and oil is 5 to 15 points lower. South America continues to move soybeans on to the export market as harvest winds down with the real flat and losing ground versus the dollar Thursday. Crush margins remain solid for the time being.

Weekly export sales were OK at 495,200 metric tons of old crop, 607,400 of new, 558,900 of old meal and 25,000 of new meal, as well as 9,400 of oil. The July soybean chart support is the upper Bollinger band at $8.58 that we have surged above, with resistance the $8.90 area that was the earlier spring high.

WHEAT

Wheat trade is 8 to 17 cents higher at midday with trade bouncing back with support from the dollar and warmer weather for the Plains and little change elsewhere in the Northern Hemisphere. The Plains look to trend warmer and drier to push the crop along this week with harvest starting to expand to the south. KC is at a 52-cent discount to Chicago on the July with steady action Thursday, while Minneapolis is back to a 4-cent premium. Weekly export sales were decent at 179,500 metric tons of old crop and 437,300 of new crop. The July KC chart support is the lower Bollinger band at $4.32, which we tested last week, before bouncing with resistance. The 20-day is at $4.59, which we are above overnight.

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