General Comments
The U.S. stock market indices are firmer with the Dow 105 higher. The dollar index is 40 lower. Interest rate products are weaker. Energies are mixed with crude flat. Livestock trade is weaker, reversing early gains. Precious metals are firmer with gold 7.50 higher.
CORN
Corn trade is 5 to 7 cents higher with trade working to fill the recent gaps on the developing weakness before reversing with weather concerns still out there. The situation with Mexico remains up in the air with talks expected to be ongoing. The heaviest rains in the next seven days have shifted southeast, but progress will remain slow for most. Ethanol margins are seeing pressure from both directions again. There has been reports on Smithfield booking corn into the Carolinas, along with Mexico purchasing Brazilian-origin corn. The weekly export sales were terrible at -8,800 metric tons of old crop, and 23,500 metric tons of new. On the July nearby chart support is the $3.95 1/2 20-day moving average with trade moving back above the 10-day at 4.16.
SOYBEANS
Soybean trade is narrowly mixed with trade drifting lower with a more open forecast for soybean planting and little fresh news before following the corn reversal. Meal is $1.00 to $2.00 lower and oil is 35 to 45 points higher. Crush margins remain solidly positive overall. South American currencies have firmed as they control the world export business for now with slight gains this morning. Field work should generally remain slow today but more progress is likely into the weekend. The corn/soybean ratio has been more stable here as more crop insurance days pass. The weekly export sales remain slow at 510,000 metric tons old crop, 73,700 new, 110,800 of meal, and 15,400 of oil. The July chart support is the 20-day at $8.44, with the trade testing the 50-day at $8.69.
WHEAT
Wheat trade is 7 to 19 cents higher with Chicago leading at midday with trade looking to stabilize the break in board trade, while spreads continue their reversal from the begging of the week. The Kansas City/Chicago spread narrowed to 26 cents before swinging back to 54 cents overnight into today. The dollar has dropped again with the down trend continuing. Hard red wheat is working into feed rations in some areas with the bounce in corn values, and reduced quality may increase feeding on that front. Weekly export sales were ok at -26,900 metric tons of new crop, and 501,900 metric tons. On the July Kansas City chart, support is the 20-day at 4.33, with trade fading below the 10-day and 100-day at $4.57 today.
Welcome
