Beans, Wheat Higher at Midday
Corn is narrowly mixed, soybeans are 4 to 6 cents higher, and wheat is 4 to 17 cents higher.
The U.S. stock market is firmer with the Dow up 250 points. The dollar index is 24 points lower. Interest rate products are weaker. Energies are mostly higher with crude up $0.50. Livestock trade is mixed with cattle leading. Precious metals are weaker with gold down $4.00.
Corn trade is narrowly mixed at midday with showers working across parts of the Belt this a.m. as pollination continues. The forecast has better rains for many in it, but remains warm into pollination for many. The ethanol margins have narrowed with the weekly report showing production 17,000 barrels per day higher, with stocks 12,000 lower.
Trade saw another 129,000 metric tons sold to China after the record sale Tuesday. On the September contract, support is the lower Bollinger Band at $3.16 after we gapped below the 20-day at $3.35 to start the week.
Soybean trade is 4 to 6 cents higher with trade working to build on the better action seen yesterday after the selloff slowed and old crop leads. Meal is flat to $1.00 higher and oil is 10 to 20 points higher. The ral remains at the midpoint of the recent range vs. the dollar. Crush margins remain stable. China bought another 389,000 metric tons of soybeans today. The August chart now has support at the 20-day at $8.77 which we got back above yesterday, with the upper Bollinger Band at $9.02 as resistance.
Wheat trade is 4 to 17 cents higher with Chicago trade going to new highs for the move with support from fund buying and lighter European yields. The ruble remains in the recent range vs. the dollar with Black Sea wheat still winning tenders. Kansas City is at a 91-cent discount to Chicago with spreads sharply wider the last four days, while Minneapolis is back to a 21 cent discount. Kansas City chart support is the 20-day at $4.41, with the upper Bollinger Band at $4.55 the next round up which we are testing at midday.