Grain Trending Higher at Midday
Corn is flat to 1 cent higher, soybeans are 4 to 6 cents higher, and wheat is 1 to 2 cents higher.
The U.S. stock market is mostly higher with the Dow 10 points higher. The dollar index is 25 points lower. Interest rate products are mixed. Energies are flat. Livestock trade is firmer. Precious metals are firmer with gold up $22.
Corn trade is flat to 1 cent higher at midday with the warmer forecast and follow-through buying from the strong start to the week with last position squaring going on ahead of 11 a.m. The forecast has limited short term issues for now with warmth expected to continue into early July with mixed rain potential. 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 crop progress showed silking at 4% vs. 7% on average, with conditions at 73% good to excellent, and 5% poor to very poor, up 1%. On the September contract, support is the 20-day at $3.31, which we are just below at midday with resistance the upper Bollinger Band at $3.41.
Soybean trade is 3 to 5 cents higher at midday with trade firming within the recent range again. Meal is $1.00 to $2.00 higher, and oil is 5 to 15 points lower. 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 crop progress showed emergence at 95% vs. 91% on average, and blooming at 14% vs. 11% on average, with 72% good to excellent, and 6% poor to very poor up 1%. The August soybean chart resistance is the 20-day at $8.68, with support the lower Bollinger Band at $8.59.
Wheat is flat to 2 cents higher in quiet midday trade with harvest pressure still continuing to fade a bit. Little change has been seen in European and Russian 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 50-cent discount to Chicago on the August, while Minneapolis is back to a 25 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 crop progress showed harvest at 41% complete on winter wheat, same as average, while spring wheat was 36% headed vs. 45% on average, and 69% good to excellent, and 6% poor to very poor, down 6%. The September Kansas City chart support is the lower Bollinger Band at $4.22, and resistance the 20-day at $4.50.