Winter wheat led Tuesday’s grains with modest gains in a quiet, pre-holiday session. December K.C. wheat was up 4 1/4 cents, helped by commercial buying, while corn and soybeans napped their way to slightly lower closes.
Midday: Wheat is the midday leader, with corn unchanged, and soybeans slightly lower.
Corn trade is narrowly mixed at midday with light two sided trade so far with trade still looking to consolidate over the $3.42 area where we find the 10-day moving average. Ethanol margins are stable to softer with energies weaker to start the week, with demand likely to bump up this week for Thanksgiving travel.
Basis and carry has shown further improvement with carry getting close to 11 cents this morning. The weekly report showed harvest 90% complete, 5% behind average, with things likely to wrap up this week with stubbornly high moisture in some areas.
On the December chart support is at the new low at $3.36 1/2. Resistance is at the $3.48 3/4 50-day moving then the $3.58 6-week high.
Soybean trade is flat to 2 cents lower overnight in continued quiet trade with action holding above the nearby support areas. Meal is $1 to $2 lower and oil is 10 to 20 points higher. South American weather looks like more of the same in the near term, with the Argentina forecast edging drier, with overall issues remaining limited but focus will ramp up as we head to December.
Export business has been quiet for the bulk of November on the daily wire, which has raised some concern but 130,000 metric tons were announced to China today. The weekly report showed harvest at 96%, 1 percentage point behind average. India increased palm oil duties to 30%, which are weighing on world veg oil prices.
On the January chart, got back above all the major moving averages, with the 20-day at $9.86 the first level of support which we are just above, and the recent high at $10.08 the next level of resistance.
Wheat trade is 3 to 6 cents higher at midday with buying picking up during the day session with a dry forecast and declines in the condition ratings. The plains look pretty warm and dry the next 7-12 days.
Weekly crop conditions declined 2 percentage points to 52% good to excellent, 11% poor to very poor, with 88% emerged, same as average. Spillover support from row crops will be needed to help with short covering but that looks limited in the near term. Basis has firmed a bit on the plains in recent days but overall remains wide.
On the December Kansas City support is the $4.13 1/2 low, with the 10-day and 20-day at $4.24, as resistance.