Corn and wheat lead trade lower at midday.
Corn trade is 2 to 3 cents lower at midday with trade testing the lower end of the recent range as we continue to drift ahead of the WASDE report tomorrow. Ethanol margins have improved slightly this week but seasonal action will be working against the blenders with the production report delayed until tomorrow.
Another batch of storms will limit near term progress in the west/central with the weekly crop progress showing maturity at 82%, 10 percentage points behind last year, and 5% behind average, with harvest at 22%, 21% behind last year, and 17% behind average. The USDA announced 150,000 metric tons of corn sold to Mexico.
On the December chart support is at the $3.44 1/4 contract low with resistance at the $3.51 20-day then the $3.58 3-week high.
Soybean trade is narrowly mixed at midday with trade still working around the $9.66 area. Meal is flat to $1 lower and oil is flat to 10 higher. Harvest progress came in at 36%, 5% behind last year, and 7% behind average.
South American weather remains mixed in the near term with drier weather expected for Argentina to allow planting to progress while northern Brazil remains excessively dry for the early part of the growing season. Trade will be looking for a more active daily wire now that China is back from the fall Holiday break with 264,000 on the daily wire today along with 131,000 to unknown.
On the November chart, the recent $9.37 low remains major chart support, with the 10-day at $9.64 holding nearby with resistance at the $9.76 200-day moving average which we tested overnight then the $9.87-$9.89 area of the two-month highs.
Wheat trade is flat to 5 cents lower at midday with trade working to test the lower end of range with buying enthusiasm remains muted amidst the large world supply.
The dollar rally continues to fade, sliding just below 93 this morning on the index. US export business will continue to be at a disadvantage in the near term with Black Sea origins continuing to dominate with Russia working to boost logistics capacity coming forward but Mexico did secure 105,000 of HRW on the daily wire.
Australia will continued to be watched with their early season difficulties so far. Winter wheat progress showed planting at 48%, 9 percentage points behind last year, and 10% behind average, with emergence at 25%, 5 percentage points behind last year, and 7 percentage points behind average.
On the December Kansas City support is the contract low at $4.20 with the 10-day at $4.37 resistance.
The U.S. stock market is firmer this morning with the Dow up 10 points. The interest rate products are higher. The dollar index is 20 lower. Energies are weaker with crude down $0.20. Livestock trade is mixed. Precious metals are mixed with gold down $4.40.