Grain Futures Higher at Midday
Corn futures are 5 to 6 cents higher, soybeans are 6 to 8 cents higher and wheat is 1 to 9 cents higher.
MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 470 points. The U.S. Dollar Index is 30 points higher. Interest rate products are mostly higher. Energies are weaker with crude down $1.30. Livestock trade is firmer. Precious metals are weaker with gold down $13.
Corn futures are 5 to 6 cents higher at midday with support from heat in the forecast after rains moved through much of the Western Corn Belt last night. The forecast has more heat the second week with projected rain coverage into late July very mixed. Ethanol margins have narrowed a bit but remain positive.
Weekly export sales were OK at 599,200 metric tons (mt) of old crop and 409,300 mt of new crop. On the September contract, support is the 20-day moving average at $3.35 with resistance the upper Bollinger Band at $3.54.
Soybean futures are 6 to 8 cents higher at midday with trade working to push through recent highs with support from weather. Meal is $3.50 to $4.50 higher and oil is 10 to 20 lower. The real remains at the midpoint of the recent range vs. the dollar. Crush margins have seen little change in recent days. Drier weather into midmonth for many will add support but concerns are more limited for now.
Weekly export sales showed improvement at 952,200 mt of old crop and 382,100 mt of new crop, with meal at 124,400 mt of old crop and 73,500 mt of new; oil at 28,900 mt. August soybean chart resistance is the $9.03 fresh high with support the 20-day moving average at $8.77.
Wheat futures are 1 to 9 cents higher at midday with harvest pressure fading more along with the crop estimates for Europe and Russia trending lower, which sparked the sharp rally Wednesday. The ruble remains in the recent range vs. the dollar with Russia winning export tenders so far this week as the U.S. rally was more pronounced than MATIF milling wheat rallied. KC is at a 65-cent discount to Chicago with spreads sharply wider the last two days; Minneapolis is back to a 2-cent discount.
Export sales were softer at 326,100 mt of the current crop year and -75,000 for the new-crop year. September KC chart support is the 20-day moving average at $4.43, which we closed above Thursday with the upper Bollinger band at $4.62 the next round up, which we have tested this morning.