Grains Mixed at Midday
Corn is 1 to 2 cents higher, soybeans are 2 to 3 cents lower, and wheat is 1 to 3 cents higher.
The U.S. stock market is firmer with the Dow up 330 points. The dollar index is 80 points lower. Interest rate products are weaker. Energies are firmer with crude up $1.50. Livestock trade is mixed. Precious metals are higher with gold up $40.
Corn trade is 1 to 2 cents higher at midday with light buying after the sharp selloff to start the week with new lows scored yesterday with oversold conditions in place, and varying yield estimates emerging from Private sources. Ethanol margins are stable to a little better with action of the energy complex, with the weekly report showing production off by 27,000 barrels per day, with stocks up 74,000 barrels.
Basis has remained fairly flat in recent days, with isolated pockets of pre-harvest strength for now. On the September contract, trade continues to have resistance at the 20-day at $3.24, with chart support at the lower Bollinger Band at $3.06 which we are testing at midday.
Soybean trade is 2 to 3 cents lower at midday with trade working to find support after the selloff yesterday with non-threatening weather requiring more demand to get trade excited with another 192,000 metric tons of new crop sold to China. Meal is flat to $1.00 lower and oil is 5 to 15 points lower. The ral remains at the upper point of the recent range vs. the dollar, which should keep new crop interest robust for now. The September chart now has resistance at the 20-day at 8.90 which is pulling back from, and supportting the lower Bollinger Band at 8.73.
Wheat trade is 1 to 3 cents higher with light buying supported by the sharply weaker dollar with trade working to hold the lower end of the recent range. The ruble is holding vs. the dollar as well with more Middle East tenders being scheduled. Kansas City is at a 86-cent discount to Chicago with spreads back to the top end of the range, while Minneapolis is back to a 6 cent discount with slight strength in the intermonth spreads. Kansas City September chart support is the fresh low at $4.21 3/4, with the 20-day back above the market as nearby resistance at $4.43.