All Grains Higher at Midday
Corn is flat to 1 cent higher, soybeans are 7 to 8 cents higher, and wheat is 2 to 6 cents higher.
The U.S. stock market is firmer with the Dow up 210 points. The dollar index is 20 points lower. Interest rate products are firmer. Energies are mostly higher with crude up $0.35. Livestock trade is mixed with hogs leading. Precious metals are weaker with gold down $1.00.
Corn trade is flat to 1 cent higher at midday with trade finding support from the decline in corn conditions as well as moving towards being oversold after the last two days along with a record sale of 1.762 million metric tons to China, but improved weather still weighs on action. The forecast has better rains for many in it, but remains warm into pollination for many. The ethanol margins have narrowed a bit but remain positive with potential OPEC production increases on deck.
Weekly crop progress showed conditions down 2% to 69% good to excellent, with 8% poor to very poor, with 29% silking vs. 32% on average, and 3% in the dough, same as average. Weekly export inspections were 902,623 metric tons. On the September contract, support is the lower Bollinger Band at $3.19 after we gapped below the 20-day at $3.36 to start the week.
Soybean trade is 6 to 7 cents higher at midday with light buying surfacing again after the washout the last two days. Meal is $1.00 to $2.00 higher and oil is 40 to 50 points higher. The ral remains at the midpoint of the recent range vs. the dollar. Crush margins have seen little change in recent days. Weekly crop progress showed conditions down 3% to 68% good to excellent, and 7% poor to very poor, with blooming at 48% vs. 40% on average, and setting pods at 11% vs. 10% on average. China bought 129,000 metric tons of new crop as well. The August chart now has resistance at the 20-day at $8.77 which we are back above at midday, with support the lower Bollinger band at $8.52.
Wheat trade is 2 to 6 cents higher at midday with trade seeing light buying as winter wheat harvest enters the homestretch with support from world values as well as harvest moves forward in Europe. The ruble remains in the recent range vs. the dollar with a focus on euro and Black Sea yields this week. Kansas City is at a 78-cent discount to Chicago with spreads sharply wider the last three days, while Minneapolis is back to a 6 cent discount.
Weekly crop progress had winter wheat 68% cut vs. 66% on average, with spring wheat 80% headed vs. 85% on average, and 68% good to excellent, and 11% poor to very poor down 1%. Kansas City chart support is the 20-day at $4.43, with the upper Bollinger Band at $4.58 the next round up.