DTN Grain Midday: Corn Futures Edge Higher

Corn is 1 to 3 cents higher, soybeans are narrowly mixed and wheat is 14 to 22 cents higher.

CORN:

Corn trade is 1 to 3 cents higher at midday Wednesday with weaker spreads as September gets closer to going to carry versus the December with overall range-bound action continuing as heat holds in the Western Corn Belt. Ethanol margins look stable to start the week with energies moving more sideways and the weekly report showing production down 14,000 barrels, with stocks up by 215,000 barrels.

Brazil will continue to move along with the end of the second crop season with frost issues still being watched as they reported book significant amounts of cargos from Argentina, while near-term weather looks more mixed into August for the U.S.

Corn basis continues to fade with cash inverses likely to see more pressure as wheat and southern sorghum start to become available to feed. On the September contract, resistance remains at $5.60 with further support at the lower Bollinger Band at $5.22.

SOYBEANS:

Soybeans are narrowly mixed with trade bouncing back from early weakness again to stay rangebound with meal weakness continuing to limit strength. Meal is $3.00 to $4.00 lower and oil is 0.65 cent to 0.75 cent higher.

The weather pattern is warmer and drier short term with more rain coverage in the extended forecast for many going into pod fill. South America will continue to ship soybeans while the run in canola values turn more sideways potentially limiting oil upside short term.

Basis levels have been flat to weaker in recent days. On the September soybean chart, resistance is at the 20-day at $13.73, which we are just below at midday, with the upper Bollinger Band at $14.30.

WHEAT:

Wheat trade is 14 to 22 cents higher at midday with spring wheat leading once again as early harvest reminds us that the crop is poor this year. Harvest will continue to expand across Europe and the Black Sea with mixed results so far and Canada on deck while the dollar once again finds support above 92 points on the index.

KC holds at 35-cent discount to Chicago. widening Wednesday, with Minneapolis at a 210-cent premium holding in the middle of the recent range. KC September on the chart has support at the 20-day at $6.31 with resistance the upper Bollinger Band at $6.84.

MARKET SUMMARY:

The U.S. stock market is mixed with the Dow down 25 points. The U.S. Dollar Index is 0.11 higher. Interest rate products are weaker. Energies are mixed with crude up $0.25. Livestock trade is mixed. Precious metals are mixed with gold off $0.50.

 

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