Corn, Soybeans, and Wheat See Midday Gains

MARKET SUMMARY:

The U.S. stock market is weaker at midday with the S and P 35 points lower. The dollar index is 22 points higher. The interest rate products are mixed. Energy trade is mixed with crude 2.40 higher and natural gas .04 cents lower. Livestock trade is broadly weaker. Precious metals are weaker with gold off 72.00.

CORN:

Corn trade is 8 to 9 cents higher at midday with trade adding to overbought conditions as they follow soybeans higher with spread action remaining mostly flat to start the month. Ethanol margins look to remain solid short term, but cheaper fall blends should start to narrow blender margins. The daily export wire was quiet again today. Weather looks to keep the crop moving forward especially in the west with early southern harvest to keep picking up with weekly crop progress report showing good to excellent at 57%(0) and 17% poor to very poor(0) with 62% dented vs. 56% on average, and 13% mature same as average. Basis will likely drift lower into September contract delivery. On the December chart the 20-day at $4.94 is supported with the strong finish with the fresh high at $5.47 1/4 as further resistance.

SOYBEANS:

Soybeans are 26 to 28 cents higher at midday with trade gapping higher initially after conditions eased lower last week and product values continue to move forward. Meal is 5.00 to 6.00 higher and oil is 145 to 155 points higher. Weather looks to keep late heat stress in play to keep pushing the crop along with the weekly report showing good to excellent at 58%(-2) and 13% poor to very poor(+1) with 13% dropping leaves vs. 9% on average. The daily export wire saw 136,000 metric tons sold to China for new crop. On the November contract chart support is the 20-day at 12.16 where we find the 20-day moving average with resistance the fresh high at 13.16 1/4.

WHEAT:

Wheat is 13 to 15 cents higher at midday with trade staying near the upper end of the range with buying picking up during the day session with deeply overbought conditions remaining in place and world values rebounding as well. Spring wheat harvest was 77% complete vs. 68% on average on the weekly report with winter wheat planting to be underway soon. Matif wheat is sharply higher as well. On the KC December chart support is the 20-day at $7.75 with the fresh high at $8.57 as resistance.

David Fiala can be reached at dfiala@futuresone.com

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