DTN Grain Midday: Futures Move Higher

©Debra L Ferguson Stock Photography

Corn is 5 to 6 cents higher, soybeans are 13 to 15 cents higher and wheat is 13 to 20 cents higher.

CORN:

Corn trade is 5 to 6 cents higher at midday Thursday with trade continuing to work the middle of the recent range with little fresh news overall and spreads softer as September/December goes to a slight carry. Ethanol margins look stable with energies moving more sideways as well, with corn strength limiting gains a bit.

Brazil will continue to move along with the end of the second crop season with frost issues still being watched as crop estimates continue to trickle lower, while near-term weather looks more mixed into August for the U.S. with possible storm damage in some spots overnight.

Corn basis continues to fade with cash inverses likely to see more pressure as wheat and southern sorghum start to become available to feed. Weekly export sales were mixed at -115,200 metric tons of old crop and 529,300 of new crop. On the September contract, resistance remains at $5.57 with further support at the lower Bollinger Band at $5.22.

SOYBEANS:

Soybeans are 13 to 15 cents higher at midday with trade looking to sustain strength after the active start to the week and weather forecasts likely to dictate late session action, with spread action remaining flat. Meal is narrowly mixed and oil is 1.45 cents to 1.55 cents higher. The weather pattern is warmer and drier short term with more rain coverage in the extended forecast for the East as we go 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. Weekly export sales were mixed at -79,200 metric tons old crop and 312,800 of new; meal at 87,300 of old and 73,100 of new, with oil at 2,200. On the September soybean chart, resistance is at the 20-day at $13.70, which we are solidly above at midday, with the upper Bollinger Band at $14.26 beyond that.

WHEAT:

Wheat trade is 13 to 17 cents higher at midday with spring wheat leading once again as early harvest reminds us that the crop is poor this year, with estimates on the crop tour sitting in the mid 20 bushel-per-acre range. Harvest will continue to expand across Europe and the Black Sea with mixed results so far and Canada on deck while the dollar has faded below 92 points on the index to multi-week lows.

KC holds at 30-cent discount to Chicago, with Minneapolis at a 219-cent premium, holding in the middle of the recent range. Weekly export sales were solid at 515,200 metric tons. KC September on the chart has support at the 20-day at $6.32 with resistance the upper Bollinger Band at $6.85.

MARKET SUMMARY:

The U.S. stock market is firmer with the Dow up 190 points. The U.S. Dollar Index is 0.44 lower. Interest rate products are mostly higher. Energies are firmer with crude up $0.70. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold up $30.00.

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