DTN Grain Midday: Soybeans Poised to Climb Higher Into Weekend

Soybeans. ©Debra L Ferguson Stock Photography

Corn is 3 to 4 cents higher with new crop flat, soybeans are 8 to 10 cents higher with new crop 12 to 14 cents higher and wheat narrowly mixed.

MARKET SUMMARY:

The U.S. stock market is firmer with the Dow up 140 points. The U.S. Dollar Index is 0.65 lower. Interest rate products are mixed. Energies are flat. Livestock trade is mostly higher with cattle leading. Precious metals are stronger with gold up $19.20.

CORN:

Corn trade is 3 to 4 cents higher upfront overnight, with new crop flat as spread trade is firmer. New crop came well off the overnight highs in choppy action. Ethanol margins will see pressure from corn values, but good driving demand and tight stocks will mostly offset that 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 in the northern Corn Belt, while I-80 South looks to be in line for good rains. Brazil continues to struggle with dryness during pollination.

Corn basis is holding firm throughout the belt. China bought 1.36 million metric tons of new-crop corn on the daily wire with unknown picking up 188,486 metric tons of old and new. On the July contract, chart resistance is the fresh contact high at $7.28 3/4 with support the recent low at $6.29 1/2.

SOYBEANS:

Soybeans are 8 to 10 cents higher up front, and 12 to 14 higher on new crop with two-sided trade Friday morning after strong buying overnight. Meal $3.50 to $4.50 higher and oil is 0.40 cent to 0.50 cent higher with more balanced crush action than we’ve seen recently. 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 short term, while domestic crush will have to carry the U.S. On the July soybean chart, support is the recent low at $14.90, with resistance the upper Bollinger Band at $16.10.

WHEAT:

Wheat trade is narrowly mixed at midday with trade struggling to hold gains despite the sharply lower dollar and flatter spillover from row crops. KC is at 26-cent discount to Chicago with Minneapolis now 40 cents above Chicago with intramonth spreads mixed. 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 $7.61.

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