Grain Futures Mostly Lower at Midday
Corn futures are narrowly mixed, soybeans are 3 to 4 cents lower and wheat is 5 to 11 cents lower.
The U.S. stock market is lower with the Dow 540 points lower. The U.S. Dollar Index is 25 points higher. Interest rate products are firmer. Energies are weaker with crude .80 higher. Livestock trade is weaker with hogs sharply lower. Precious metals are mixed with gold up $2.90.
Corn futures are narrowly mixed at midday with trade remaining near the fresh lows scored Thursday with choppy action likely to continue into the weekend. The forecast has limited short-term issues for now with warmth expected to continue into early July. Ethanol margins remain stable with weaker corn prices offsetting the energy pull back but concerns about driving demand are building.
Trade is still looking for confirmation of the rumored export sales with 203,500 metric tons (mt) of milo hitting the daily wire. Basis should remain fairly flat. On the July contract support is the fresh low at $3.14 with resistance the lower Bollinger band at $3.21.
Soybean futures are 3 to 4 cents lower at midday with rangebound trade remaining in place as fresh bullish news is lacking except for another 132,000 mt booked to China for new crop. Meal is 1.50 to $2.50 lower and oil is 5 to 15 points lower. The real is weaker vs. the dollar as well Friday morning. Crush margins have seen little change in recent days.
Weather should remain mostly a non-issue for soybeans for the moment. The July soybean chart resistance is the upper Bollinger band at $8.85 and at support the 20-day moving average at $8.65, which we testing at midday.
Wheat futures are 4 to 13 cents lower at midday with harvest pressure likely to carry into the weekend with mostly open weather for the Plains. Little change has been seen in European weather as well. The ruble remains in the recent range vs. the dollar with U.S. export competitiveness slipping the last couple of days.
KC is at a 55-cent discount to Chicago on the July, while Minneapolis is back to a 25-cent premium. The July KC chart support is the lower Bollinger band at $4.18 and resistance is the 20-day moving average at $4.45.