Corn is 16 to 18 cents higher, soybeans is 6 to 8 cents higher and wheat is 12 to 16 cents higher.
The U.S. stock market is mixed with the Dow down 30 points. The U.S. dollar Index is 0.30 lower. Interest rate products are higher. Energies are mixed with crude down $0.30. Livestock trade is mixed. Precious metals are firmer with gold up $13.00.
Corn trade is 16 to 18 cents higher at midday with new crop 7 to 8 cents higher as the spreads firm again and trade moves back towards the upper end of the range with broad buying during the day session. Ethanol margins should remain range-bound with driving demand still improving while rising corn values limit upside. USDA will release the April WASDE on Friday morning, which is the main news this week with domestic carryout expected to be at 1.396 billion bushels. The market will also be focusing on weather as rains work through much of the Corn Belt.
Corn basis should remain sideways short term with ethanol and export movement needing maintain the recent improvements in pace. Double-crop progress in Brazil looks to have mixed weather for most, with early growth seeming to be OK for now. Weekly export sales eased a bit to 757,000 metric tons of old crop and 50,000 of new. On the May contract, chart resistance is the upper Bollinger Band at $5.67, which we are walked through Thursday morning, then the contract high at $5.85, with the 20-day at $5.52 nearby chart support then the $5.34 lower Bollinger Band.
Soybeans are 6 to 8 cents higher at midday with trade seeing flat spread action amid disappointing exports sales and spillover support from corn. Meal is $1.00 to $2.00 lower and oil is 0.20 cent to 0.30 cent higher. Oil and meal have both struggled to regain momentum in recent days with Thursday morning being no exception. The old crop soybean balance sheet will be one of the main items watched on the WASDE Friday morning with carryout expected to be at 119 million bushels. Argentina is likely to see some dryness again as the crop moves forward while harvest will continue to progress in Brazil.
New-crop export sales for the U.S. remain limited as well with weekly sales at 92,500 metric tons of old crop, 338,600 of new; meal at 127,700 of old and 4,800 of new; oil at 15,700 metric tons. The May soybean chart has resistance at the upper Bollinger band at $14.43, then the contract high at $14.65, which we did not take out on the surge last week, with the 20-day nearby support at midday just above the market at $14.12, which is where we are just above at midday, and then the $14.00 area.
Wheat trade is 12 to 16 cents higher at midday with trade finding broad buying as the higher protein wheats lead again and spillover support from corn. The weaker trade in the dollar should help support trade, along the easing of oversold conditions. Weather in the Plains should encourage growth with moisture light for many and mostly seasonal temperatures. KC has narrowed to a 50-cent discount to Chicago with Minneapolis 11 cents above Chicago. Weekly export sales were soft for old crop at 82,000 metric tons, but new crop was 529,900 metric tons. KC May on the chart has support at the low seen last week at $5.53, with resistance the 20-day at $5.79, which we are testing at midday.