Grains Mixed at Midday
Corn is 7 to 8 cents higher, soybeans are narrowly mixed, and wheat is 2 cents lower to 9 cents higher.
The U.S. stock market is mostly higher with the Dow 420 points higher. The dollar index is narrowly mixed. Interest rate products are mixed. Energies are firmer with crude $0.50 higher. Livestock trade is weaker. Precious metals are mixed with gold up $3.40.
Corn trade is 7 to 8 cents higher with short covering ahead of the Quarterly stocks and acres report coming tomorrow along with delivery of the July contract. The forecast has limited short-term issues for now with warmth expected to continue into early July with some areas seeing good rains over the weekend. Ethanol margins are stable but with gasoline demand showing signs of slowing again. The report is expected to be show stocks at 4.951 billion bushels, and acres at 95.21 million.
Weekly export inspections remain solid at 1.235 million metric tons. Weekly crop progress is expected to show steady to slightly better conditions and silking near to slightly above average. On the July contract support is the fresh lows at $3.14, with resistance the lower Bollinger band at $3.21, which we are above at midday.
Soybean trade is narrowly mixed at midday with range-bound action continuing ahead of the report coming tomorrow. Meal is flat to $1.00 lower and oil is 20 to 30 points higher. On the report, soybean stocks are expected to be at 1.392 billion, and acres at 84.716 million. The ral is up slightly against the dollar this morning. Crush margins have seen little change in recent days. Weather should remain mostly a non-issue for soybeans for the moment.
Weekly export inspections remain soft at 324,514 metric tons. Weekly crop progress is likely to show steady to slightly better conditions with emergence and planting almost complete with double crop. The July soybean chart resistance is the upper Bollinger Band at $8.85, and at support the 20-day at $8.67, which we are just below at midday.
Wheat is 2 cent lower to 9 cents higher with Chicago trade leading midday with choppy action expected to continue as harvest progresses. Little change has been seen in European weather with harvest beginning in the more southern areas. The ruble remains in the recent range vs. the dollar with U.S. export competitiveness slipping the last couple of days. Kansas City is at a 56-cent discount to Chicago on the July, while Minneapolis is back to a 20 cent premium. The report is expected to be show stocks at 980 million bushels, and acres at 44.718 million.
Weekly crop progress should show wheat harvest closing in on half done for winter wheat, with spring wheat still lagging on maturity. Weekly export inspections remain solid at 515,359 metric tons. The July Kansas City chart support is the lower Bollinger Band at $4.18, and resistance the 20-day at $4.45.