DTN Grain Midday: Futures Look to Head Into the Weekend Higher

Photo: United Soybean Board via Flickr

Corn is 13 to 14 cents higher up front and 23 to 25 cents higher on new crop; soybeans are 46 to 48 higher up front and 48 to 52 higher on new crop, and wheat is 14 to 20 cents higher.

CORN:

Corn trade is 13 to 14 cents higher up front, with the back months 23 to 25 cents higher and weaker spread trade as buying returns after Thursday’s washout on short covering into the weekend and spillover from calmer trade elsewhere. Ethanol margins are seeing support from corn values sliding on the week, but concerns about blending rates will limit upside along with the energy complex flattening out.

Brazil weather looks mostly unchanged short term as the crop advances towards harvest with some late rains. Meanwhile U.S. weather will be watched for consistency in the second week forecast with cooler weather expected for the most by Monday. Corn basis should remain flat to weaker near term with more attention going to new crop.

On the July contract, trade is back below the 20-day at $6.65 with the late strength Thursday holding, with the lower Bollinger Band at $6.23.

SOYBEANS:

Soybeans are 46 to 48 cents higher up front, with new crop 48 to 52 cents higher and trade retracing about 50% of Thursday’s action so far with slightly weaker spread trade and short covering in products. Meal is $4.50 to $5.50 higher and oil is 1.85 cents to 2.05 cents higher.

The weather pattern should allow for short-term stress to give way to rains in the center of the belt with double-crop acres to go in as soon as wheat harvest moves along. South America should continue to see shipping progress short term, with U.S. basis soft with processors and exporters firming bids in spots after Thursday.

On the July soybean chart, support is $13.23 1/2 lower from Thursday, with $14.00 the first level of resistance on the rebound.

WHEAT:

Wheat trade is 14 to 20 cents higher at midday with trade bouncing back along with the row crop with headwinds from the dollar and harvest likely to stay in place short term. The dollar is attempting to consolidate at over 91 points on the index post Fed, which will work to limit upside if sustained with more consistent action into the second half of the month.

Warmer weather this week should help to bring winter wheat along after the slowdown 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 with Russia mostly OK for now.

KC continues at a 54-cent discount to Chicago widening a bit, with Minneapolis at a 107-cent premium. KC July on the chart has resistance the 20-day at $6.25 with support at the lower Bollinger Band at $5.91.

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