Corn futures are narrowly mixed at midday; soybean futures are 4 to 8 cents lower; wheat futures are 17 cents lower to 6 cents higher.
Corn futures are narrowly mixed with trade finding light buying again as it pushed closer to completely filling the gap left last week before fading during the day session.
Ethanol margins are likely to narrow more with recent corn strength and energy weakness with the weekly report showing production off 13,000 barrels per day (bpd) while stocks rose 1.348 million barrels, with potential political threats to the mandates again on the horizon. Brazil will continue to evaluate the second crop as estimates drift lower, while the U.S. pushes deeper into pollination with a warmer and drier week.
Corn basis has remained flat with cash inverses likely to see more pressure as wheat and southern sorghum start to become available to feed. On the September contract, trade moved back above the 20-day at $5.59 Tuesday, and the top of the gap at $5.88 looms above the market.
Soybean futures are 3 to 6 cents lower at midday with trade struggling to hold gains in two-sided action so far with meal strength needing to hold up to consolidate gains as soy oil moves to a more sideways pattern with hints of wetter weather in the second week of the forecast.
Meal is $4.00 to $5.00 higher and oil 170 to 200 points lower. The weather pattern is warmer and drier short term, with rains toward the end of the second week for much of the belt potentially. South America will continue to ship soybeans while the run in canola values turn sharply lower. Basis levels have been flat to weaker in recent days.
On the September soybean chart support is the 20-day moving average at $13.57, which we are solidly above, with $14.00 holding this morning; the Upper Bollinger Band at $14.39 is the next round up.
Wheat futures are 17 cents lower to 6 cents higher as spring wheat loses momentum and traders assess how much damage has been priced in. Winter wheat sees harvest pressure ease along with spread unwinding. Harvest will continue to expand across Europe and the Black Sea with mixed results so far.
KC holds a 41-cent discount to Chicago, steady this morning, with Minneapolis at a $1.94-cent premium in weaker action, now 40 cents off the week highs. KC September on the chart has support at the 20-day moving average of $6.25 with resistance at the upper Bollinger band of $6.75, which we are just below at midday.
The U.S. stock market is higher with the Dow up 200. The U.S. Dollar Index is 20 lower. Interest rate products are weaker. Energies are firmer with crude up 2.60. Livestock trade is mostly higher. Precious metals are mixed with gold down $7.00.