Grains Mixed at Midday
The U.S. stock market is mixed with the Dow flat. The dollar index is 25 points lower. Interest rate products are mixed. Energies are narrowly mixed with crude flat. Livestock trade is mostly lower. Precious metals are firmer with gold up $8.
Corn trade is narrowly mixed at midday with trade bouncing back off the overnight lows as the forecast trended back hotter for the week. The forecast has warmer conditions and spotty rain for most areas into mid-July, with the second week trending warmer on some models overnight.
The weekly ethanol report showed production 14,000 barrels per day higher, while stocks were 456,000 barrels higher, the first rise in some time with concerns about forward demand building. On the September contract, support is the 20-day at 3.35 with resistance the upper Bollinger Band at $3.51.
Soybean trade is 2 to 3 cents lower at midday with choppy trade ongoing at the upper end of the range and little fresh news. Meal is flat to $1.00 lower and oil is 30 to 40 points lower. The real remains at the midpoints of the recent range vs. the dollar. Crush margins have seen little change in recent days. Drier weather into mid-month for many will add support but we remain aways from the key podfill time frame. The August soybean chart resistance is the $9.03 fresh high, with support the 20-day at $8.76.
Wheat is 7 to 17 cents higher at midday with harvest pressure fading more along with the crop estimates for Europe and Russia trending lower, which is encouraging short covering. The ruble remains in the recent range vs. the dollar with Russia winning export tenders so far this week. Kansas City is at a 57-cent discount to Chicago on the August, while Minneapolis is back to a 8 cent premium. The September Kansas City chart support is the lower Bollinger Band at $4.22, and resistance the 20-day at $4.44, which we are above at midday.