Wheat, Corn Lower at Midday
Corn is 2 to 3 cents lower, soybeans are 1 to 2 cents higher, and wheat is flat to 3 cents lower.
The U.S. stock market is firmer with the Dow up 240 points. The dollar index is 25 points lower. Interest rate products are weaker. Energies are mostly higher with crude up $0.80. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold up $4.
Corn trade is 2 to 3 cents lower in quiet pre-report trade as we consolidate further in the lower end of the range. The weekly ethanol report showed production down 13,000 barrels per day, and stocks down 596,000 barrels taking stocks below 20 million barrels. Basis has remained fairly flat in recent days, with pressure likely at locations with a strong crop coming soon.
On the WASDE report, trade is looking for yields to edge above 180 BPA with carryouts remaining near 2.8 billion bushels. On the September contract, trade continues to have resistance at the 20-day at $3.18, with chart support at the lower Bollinger Band at $3.03.
Soybean trade is 1 to 2 cents higher ahead of the report with exports and conditions likely to continue their tug of war with further sales of 258,000 metric tons and 120,000 metric tons sold to unknown. Meal is narrowly mixed, and oil is 40 to 50 points lower. The real remains in the tighter recent range vs. the dollar. Weather looks to continue to be good for most into podfill.
The WASDE report is expected to show yields moving to above 51 BPA with carryout likely to edge higher. The September chart now has resistance at the 20-day at 8.85 which we are pulling back from, and support the lower Bollinger band at 8.64.
Wheat trade is flat to 3 cents lower at midday with trade remaining choppy while it holds the lower end of the range and awaits further direction from the report and row crops. The ruble is holding vs. the dollar as well with more Middle East tenders being scheduled into fall along with weaker prices going to exporters on the ones that filled today. Kansas City is at a 77-cent discount to Chicago with spreads now a dime off the recent highs, while Minneapolis is back to a 1 cent premium.
The WASDE report will focus more on world numbers with increases expected for Russian production tomorrow. Kansas City September chart support is the fresh low at $4.09 3/4, with the 20-day back above the market as nearby resistance at $4.33 3/4.