Corn is 2 to 3 cents lower with new crop 8 to 9 cents higher, soybeans are 1 to 2 cents higher with new crop 4 to 6 cents higher and wheat 4 to 8 cents higher.
The U.S. stock market is firmer with the Dow up 70 points. The U.S. Dollar Index is 0.03 lower. Interest rate products are mixed. Energies are higher with crude up $0.85. Livestock trade is mixed. Precious metals are mixed with gold up $7.20.
Corn trade is 2 to 3 cents lower at midday with weaker spread action so far after late-day weakness on Tuesday, which is the first yellow flag we’ve seen on this move for a bit. New crop is 8 to 10 cents higher, just below contract highs. The weekly ethanol report showed production 7,000 barrels a day higher, while stocks were 704,000 barrels higher.
Trade will continue to watch for rains to benefit the rapid early corn planting progress, with some key areas still short of moisture. Brazil continues to struggle with dryness during pollination. Corn basis is holding firm throughout the belt.
USDA announced new crop sales to Mexico of 184,100 metric tons to Mexico, 147,320 to unknown split between old and new, while China cancelled 140,000 metric tons of old crop sales. On the July contract, chart resistance is the fresh contact high at $7.04 with support the recent low at $6.29 1/2.
Soybeans are 1 to 2 cents higher with slightly weaker spread action after early strength, while meal takes the lead in the product complex. Meal is $3.00 to $4.00 higher and oil is 0.40 cent to 0.50 cent lower. Planters will continue to roll short term with some areas of rain slowing action, but we will remain well ahead of normal.
South America should continue to see shipping progress with some Argentina soybeans starting to move. On the July soybean chart, support is the recent low at $14.90, with resistance the upper Bollinger Band at $15.89.
Wheat trade is 4 to 8 cents higher at midday with trade likely to keep chopping around the upper end of the range with spillover from the row crops and the dollar holding the bounce off the lows so far. KC is at 27-cent discount to Chicago with Minneapolis now 45 cents above Chicago.
Seasonal weather on the Plains should boost growth with dry concerns for spring wheat staying in place. Other Northern Hemisphere weather will continue to be watched as well with little fresh news on the front. KC July on the chart has support at the recent low of $6.86 3/4 and resistance the upper Bollinger Band at $7.44.