Corn futures are flat to 3 cents lower at midday Thursday; soybean futures are 16 to 20 cents higher; wheat futures are flat to 6 cents lower.
Corn futures are flat to 3 cents lower at midday with weaker spread action as we continue to consolidate near the upper end of the range. The April WASDE report will be released Friday with domestic corn carryout expected at 1.415 billion bushels (bb) versus 1.440 bb last month, with world stocks and South American production little changed. Weekly ethanol production slipped 33,000 barrels per day (bpd) with stocks finally sliding 626,000 barrels with more drawdowns needed to support margins.
Corn planting should continue to move along at a normal pace with double crop in Brazil continuing to develop well. CONAB has edged production estimates past 115.6 million metric tons (mmt) from 112.39 mmt the month prior. Weekly export sales edged lower at 782,400 metric tons (mt) of old crop and 145,200 mt of new crop.
On the July contract chart, we have support at the 10-day moving average at $7.31 then the 20-day moving average at $7.27 with resistance at the new contract high of $7.55 1/2 printed Tuesday.
Soybean futures are 16 to 20 cents higher at midday with action firming during the day session with better spread action and little fresh news. Meal is flat to $1.00 higher and oil is 55 to 65 points higher.
On the WASDE report Friday, trade is expecting domestic carryout at 262 million bushels (mb), down slightly from last month, with world numbers edging lower on weaker Brazil and Argentina production. South American harvest will continue to push forward with early planting still a bit off in the U.S. Crush margins will need one of the products to step forward and support margins with both well off the highs and energies limiting oil upside in recent days.
Weekly export sales were in line with seasonal action at 800,700 mt of old crop, 298,500 mt of new, meal was 66,200 and oil was 6,200 with product movement fading a bit. On the July soybean chart we have resistance at the 10-day moving average of $16.25 which we are above at midday. Support is at the $16.05 50-day then the low printed Sunday night at $15.60.
Wheat futures are flat to 6 cents lower at midday with trade starting to tread water at the upper end of the recent range as we await further crop development, along with progress or lack thereof on world issues. The poor early winter wheat crop ratings should limit downside this week. The WASDE report is expected to show carryout at 656 mb, up just slightly from last month with world stocks similarly unchanged.
The Plains look to be open this week with rains for the eastern growing areas possible with the second week potentially looking better for some western areas with excessive heat looking limited in the short term. Weekly export sales improved slightly at 156,300 mt of old, and 223,000 mt of new. The KC May chart the 20-day at 10.78 which we continue to trade just above is support then the lower Bollinger Band at $10.10. Resistance is at the $10.99 1/4 high printed Tuesday then the $11.49 1/4 upper Bollinger Band.
The U.S. stock market is weaker with the Dow 180 points lower. The U.S. Dollar Index is 2 points higher. Interest rate products are mostly weaker. Energies are mixed with crude down .40 and natural gas higher. Livestock trade is bouncing back with cattle and hogs higher. Precious metals are higher with gold up 13.00.