Corn is 3 to 4 cents lower, soybeans are 1 to 2 cents lower, and wheat is 2 cents lower to 4 cents higher.
The U.S. stock market is mixed with the Dow down 170 points. The dollar index is 20 points lower. Interest rate products are mixed. Energies are firmer with crude up $0.50. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold flat.
Corn trade is 3 to 4 cents lower with position squaring ahead of the WASDE report at 11 a.m., with a return to forecast watching after that. The USDA confirmed 1.365 million metric tons sold to China combined for old and new crop. The forecast has more heat the second week with projected rain coverage into late July very mixed.
The ethanol margins have narrowed a bit but remain positive. The WASDE report is expected to show 2.27 billion bushels of old crop carryout, and 2.683 billion of new, with yields likely untouched for now. On the September contract, support is the 20-day at 3.37 with resistance the upper Bollinger Band at $3.54.
Soybean trade is 1 to 2 cents lower with trade holding at the upper end of the range pre-report. Meal is $1.00 to $2.00 lower, and oil is flat to 10 points higher. The ral remains at the midpoint 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 concerns are more limited for now.
The WASDE report is expected to show carryout at 584 million bushels of old crop, and 416 million of new, with yields holding steady for now. The August soybean chart resistance is the $9.03 fresh high, with support the 20-day at $8.77.
Wheat is 2 cents lower to 3 cents higher with Chicago trade continuing to lead action. The ruble remains in the recent range vs. the dollar with Russia winning export tenders so far this week as the U.S. rally sharper than the Euro rally with harvest pushing forward across the northern hemisphere. Kansas City is at a 74-cent discount to Chicago with spreads sharply wider the last three days, while Minneapolis is back to a 4 cent discout.
On the report, wheat carryout is expected to be at 948 million bushels. The September Kansas City chart support is the 20-day at $4.43, which we closed above today with the upper Bollinger Band at $4.59 the next round up, which we tested yesterday.