DTN Grain Midday: Corn Futures Flat to Higher

    Young corn rows. ©Debra L Ferguson

    Corn futures are flat to 3 cents higher at midday Wednesday; soybean futures are 4 to 9 cents lower; wheat futures are 9 to 14 cents higher.

    CORN:

    Corn futures are flat to 3 cents higher at midday with weaker spread action as we see some selling across grains this morning with overbought conditions and little fresh bullish news to push trade further.

    Ethanol margins will remain tight until further stock draws from better demand and/or exports can materialize with E15 an expected step in that direction and the weekly report showed production down 8,000 barrels per day (bpd) and stocks down 1.1 million barrels. Trade will be watching for further sales on the daily wire after the second China announcement in two weeks with nothing again Wednesday.

    The second crop in Brazil will continue to head towards pollination with some holes in the forecast. On the July contract chart, we have support at the 20-day moving average at $7.37 with resistance at the new contract high of $7.73 3/4 printed Tuesday.

    SOYBEANS:

    Soybean futures are 4 to 9 cents lower at midday with trade working to hold $15.00 for new crop while old crop remains solidly below the recent highs with little fresh news. Meal is $5.00 to $6.00 lower and oil is 75 to 85 points higher. South American harvest will continue to push forward with early planting still a bit off in the U.S.

    New-crop November continues to struggle to defend acres but slow planting would likely favor soybeans if the weather issue persists. On the July soybean chart we have resistance at the Upper Bollinger band at $17.11. Support is at the $16.42 20-day moving average, which we continue to hold just above.

    WHEAT:

    Wheat futures are 9 to 14 cents higher at midday with two-sided action so far with potential improvement in the second week forecast as we head towards overbought conditions with the sharp recent rally; buying picked back up at midday Wednesday. Winter wheat leads but spring wheat could see support from incoming storms slowing planting.

    KC wheat is back to a 9-cent premium, narrowing a little from the recent highs with a 53 cent premium to Chicago. The KC July chart has resistance at the fresh high at $11.84 scored Tuesday with the upper Bollinger Band at $11.67, just above that market so far, and the 20-day moving average well below that market at $10.85.

    MARKET SUMMARY:

    The U.S. stock market is firmer with the Dow 210 points higher. The U.S. Dollar Index is 11 points lower. Interest rate products are firmer. Energies are firmer with crude up 2.20 and natural gas firmer. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold up 4.00.

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