DTN Grain Midday: Corn, Soybeans Scoring New Contract Highs

©Debra L Ferguson Stock Photography

Corn is 6 to 8 cents higher with new crop 14 to 16 cents higher, soybeans are 24 to 26 cents higher with new crop 21 to 23 cents higher and wheat 1 to 3 cents higher.

MARKET SUMMARY:

The U.S. stock market is firmer with the Dow up 150 points. The U.S. Dollar Index is 0.38 lower. Interest rate products are higher. Energies are weaker with crude down $0.60. Livestock trade is weaker. Precious metals are stronger with gold up $32.20.

CORN:

Corn trade is 6 to 8 cents higher on July and 14 to 16 cents higher on December at midday with weaker spread action ongoing as new contract highs are scored again due to spillover from soybeans and weather concerns. Ethanol margins will see pressure from corn values, but good driving demand and tight stocks will mostly offset short term.

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. Weekly export sales were soft at 137,400 metric tons old crop and 106,200 metric tons of new. On the July contract, chart resistance is the fresh contact high at $7.22 1/2 with support the recent low at $6.29 1/2.

SOYBEANS:

Soybeans is 24 to 26 cents higher at midday on the front months, and 9 to 11 higher on new crop with fresh highs scored on new crop. Meal is $1.00 to $2.00 higher and oil is 0.70 cent to 0.80 cent higher. Planters will continue to roll short term with some areas of rain slowing action, but we will remain well ahead of normal with northern areas still dry.

South America should continue to see shipping progress with some Argentina soybeans starting to move. Weekly export sales were mixed at 165,300 metric tons of old crop and 192,200 metric tons of new crop; meal was 202,000 of old and 64,700 of new, and oil at 6,100.On the July soybean chart, support is the recent low at $14.90, with resistance the upper Bollinger Band at $15.97.

WHEAT:

Wheat trade is 1 to 3 cents higher at midday with the higher protein wheats leading as trade works to follow the row crops further. KC is at 25-cent discount to Chicago with Minneapolis now 40 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.

Weekly export sales were disappointing at -95,600 metric tons and new crop at 399,620 metric tons. KC July on the chart has support at the recent low of $6.86 3/4 and resistance the upper Bollinger Band at $7.52.

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