Corn, Soybean, Wheat Futures All Lower at Midday Wednesday

MARKET SUMMARY:

Corn futures are 4 to 5 cents lower at midday Wednesday; soybean futures are 2 to 3 cents lower; wheat futures are 8 to 14 cents lower. The U.S. stock market is weaker at midday with the S&P 33 points lower. The U.S. Dollar Index is 22 points higher. The interest rate products are weaker. Energy trade is firmer with crude up 1.65 and natural gas up .02. Livestock trade is mostly lower with hogs leading. Precious metals are weaker with gold off 35.00.

CORN:

Corn futures are 4 to 5 cents lower with early gains fading again as trade gets more oversold and bullish news remains in short supply as another set of fresh lows come in. Weekly ethanol production was 18,000 barrels per day higher and stocks were 400,000 barrels lower. The daily export wire saw 136,000 metric tons (mt) of corn sold to South Korea. Weekly export sales are expected to be in the 700,000 to 1.0 million metric ton (mmt) range. Basis continues to hold the recent range for now. Weather looks to keep the west wetter in the short term with better rains moving toward the center of the belt with temps to remain above normal. On the July chart, the 20-day moving average at $4.62 is resistance with the fresh low at $4.35 as support, which we scored this morning.

SOYBEANS:

Soybean futures are 2 to 3 cents lower with early gains fading again with spreads weaker as new crop remains flat with oil continuing to lead the product complex. Meal is 2.50 to 3.50 lower and oil is 60 to 70 points higher. South America will continue to move post-harvest bushels on to the world market as harvest wraps up. Basis and crush margins look to hold the recent range into June. Weekly export sales are expected to be in the 400,000 to 600,000 mt range. Planting should wrap up except for double-crop soon enough with rains to support emergence in the west. On the July contract, chart resistance is the 20-day moving average at $11.95 with support the lower Bollinger Band at $11.62.

WHEAT:

Wheat futures are 8 to 14 cents lower with early gains evaporating again as we score fresh lows as harvest pressure continues to build and broad risk-off trade picks up. Harvest should continue to expand with rains slowing early progress in some areas, while spring wheat development should be aided by rains. Matif wheat is lightly weaker. On the KC July chart, resistance is the 20-day moving average at $6.80 with the fresh low at $6.23 as support.

David Fiala can be reached at dfiala@futuresone.com

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