Soybeans posted a strong rally Friday, holding near session highs late in the day. Corn showed little life, but still performed better than Chicago wheat with its pratfall to a lower close. A look around the board at futures spreads indicate most of the support came from noncommercial buying to close out the week.
Midday: Soybeans lead at midday, with corn and wheat mixed.
Corn trade is 1 to 2 cents higher at midday with trade once again testing upside resistance with trade not able to consolidate above it yet. News will be light until next Friday when the quarterly grain stocks report will be released, so harvest results are what the market should be talking about next week with potential disruptions from rain in the west. Some hedge pressure is likely going to show up this afternoon ahead of the harvest weekend.
Both better than expected and worse than expected have been in market discussions. Ethanol margins remain stable in the near term with futures slightly higher this morning.
On the December chart support is at the $3.44 1/4 August low with resistance at $3.53, where we find the 10-day and 20-day moving averages with a high of #3.56 1/4 seen this morning.
Soybean trade is 9 to 11 cents higher at midday with trade testing upside resistance with a close over $9.79 needed to getting the market more excited. Meal is $3.50 to $4.50 higher and oil is 5 to 15 points higher. Trade is watching demand and harvest results closely as Mexico bought 190,000 metric tons to get us to nine sales announcements in 10 days.
Yield numbers as harvest progresses should give us some direction the rest of the week before rains slow things into next week. South American planting should improve into the beginning of October with some Brazilian dryness expected to continue.
On the November chart support is at the 10-day at $9.67, then the 20-day at $9.59. Resistance is at the $9.79 200-day, which we are above at midday.
Wheat trade is 4 lower to 4 higher at midday with spring wheat leading after winter wheat sits back from new highs made this morning.
Australia continues to see some struggles as the crop emerges from dormancy, while the large Russian crop will continue to keep pressure on the ability of the US to compete on the world market. Egypt is starting to look around for cargos again with the advantage remaining with the Black Sea. Dry conditions on the plains will likely continue to slow planting progress.
On the December Kansas City contract 20-day at $4.40 is support the 50-day at 4.67 is resistance.