Corn and soybeans finished higher Friday with some profit-taking possible after a bearish week of trading, but also left a lot of questions unanswered about this year’s crop conditions. Winter wheat ended a little lower while September Minneapolis wheat closed up 8 1/2 cents.
Midday: Trade is higher across the board at midday with forecast fluctuations and value buying.
Corn trade is 5 to 7 cents higher at midday with trade finding some light buying after the heavy selling the last couple of days with warmer near term weather with traders still watching for a medium to longer term pattern shift. Ethanol margins have improved this week with energy firmer and the selloff in corn and ethanol futures are edging higher again this morning.
Basis has been stable, and should improve slightly with the break. On the December chart support is at the $3.83 low scored yesterday with resistance the $3.92 20-day moving average then the $4.00 10-day with trade right around the 200-day at $3.88.
Soybean trade is 10 to 14 cents higher at midday with trade trying to find some footing with the washout yesterday with a slightly warmer forecast bias near term. Meal is $5 to $6 higher, and oil is 5 to 15 points higher.
Weather should continue to be the market mover with the action the past 3 weeks ($1.40 range) likely going to keep the day to day trading ranges 15-25 cents as we move into the most important six weeks of soybean production weather coming forward.
China was active pricing soybeans overnight with 1.3 million metric tons announced as sold with larger frame contracts signed as well, with NOPA crush out Monday, and expected to show tighter soyoil stocks.
On the November chart support is at the 200-day moving average at $9.83 with resistance at the 10-day at $10.04 which we did test briefly this a.m.
Wheat trade is 2 to 18 cents higher with Minneapolis trade leading at midday with weather concerns continuing to hang around for the Dakotas with what will pass for harvest coming soon. The weekly export sales were soft at 357,700 metric tons. The dollar tested the low end of the range again at midday, but the Black Sea continues to dominate export business for now.
Spread trade remains very soft for the winter wheat, and spring wheat went back to a small carry yesterday, although it has firmed a bit this a.m. On the December Kansas City contract support is the 20-day at $5.40 with the 10-day at $5.69 resistance.