DTN Grain Midday: Soybeans, Wheat Lower, Corn Narrowly Mixed

Newly emerged soybeans. ©Debra L Ferguson Stock Photography

Corn is narrowly mixed on old-crop, 9 cents to 11 cents lower on new-crop, soybeans are 27 cents to 29 cents lower, and wheat is 8 cents to 27 cents lower.

CORN:

Corn trade is narrowly mixed on July, and 9 cents to 11 cents lower on new-crop with stronger spread action and broad ag commodity selling so far with mixed moisture and forecasts along with trade getting overbought and unable to extend gains. Ethanol margins remain solid with the weekly report showing production 33,000 barrels per day higher, and stocks are up 342,000.

Brazil weather looks mostly unchanged short term as the crop advances towards harvest with some late rains while U.S. weather keeps the western part of the Corn Belt drier short term, with better rains to the east. Corn basis should remain flat to weaker near term with more attention going to new-crop.

On the July contract chart resistance is the upper Bollinger band at $7.06 with the 20-day as support at $6.64.

SOYBEANS:

Soybeans are 27 cents to 29 cents lower with flat spread action and broader selling toward midday with little fresh news. Meal is $4.50 to $5.50 lower and oil is 1.25 cents to 1.35 cents lower with oil still near contract highs while meal failed hold the rally yet again. The weather pattern should allow for the end of first-crop planting and spraying of earlier planted soybeans.

South America should continue to see shipping progress short term, with U.S. basis soft with processors widening bids in recent days before stabilizing into midweek.

On the July soybean chart support is the 20-day at $15.56, which we are just below overnight, with resistance the upper Bollinger band at $16.21.

WHEAT:

Wheat trade is 8 cents to 27 cents lower at midday with spring wheat the downside leader after relief rains in the Dakotas, which is encouraging long liquidation to continue after the early week reversal. Warmer weather this week should help to bring winter wheat along after the slow down last week with early harvest getting underway on the far Southern Plains.

Other Northern Hemisphere weather will continue to be watched as well with little fresh news on the front. Kansas City continues at a 52-cent discount to Chicago, with Minneapolis at a 70-cent premium, almost 70 cents off the early week spike highs.

KC July on the chart has resistance the 20-day at $6.33, which will be tested again overnight before fading with the lower Bollinger band below that at $5.93.

MARKET SUMMARY:

The U.S. stock market is flat with the Dow up 20. The U.S. Dollar Index is flat. Interest rate products are higher. Energies are flat to weaker with crude off .15. Livestock trade is mostly lower. Precious metals are mixed with gold down 1.50.

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