December corn slid to its lowest close in 2017 and January soybeans were down 4 1/4 cents, both failing to convince potential buyers on another quiet day of trading. December Chicago wheat drew just enough commercial support to end with a gain of 1 1/2 cents.
Row crops are lower at midday, wheat flat.
Corn trade is 1 to 2 cents lower at midday with a new low being scored by half a cent. Ethanol margins are fairly stable with blender getting the best deal with ethanol futures lower. The weekly export sales were solid at 949,500 metric tons of old crop. Basis and carry is expected to firm if futures continue on this flat to lower trend. The trading range is just under 3 cents illustrating continued anemic trade.
On the December chart support is at the new low at $3.36 1/2. Resistance is at the $3.49 1/2 50-day moving then the $3.58 6-week high.
Soybean trade is 3 to 6 cents lower at midday with trade giving back the rebound from yesterday as buying enthusiasm evaporates after some early strength. Meal is $0.50 to $1.50 lower, and oil is 5 to 15 points lower. South American weather looks to continue working drier in Argentina in the near term, but major issues remain very limited. Export business has been quieter lately with few fresh sales announced on the daily wire. The weekly export sales were ok at 1.1 million metric tons of beans, 163,100 of meal, and 2,700 of oil.
On the January chart futures fell below all the major moving averages yesterday with the 100-day at $9.76 now resistance which is where we failed to hold this morning with the September low of $9.60 the next notable support with many chart analysts mentioning the $9.50 level.
Wheat trade is flat to 4 higher at midday with wheat continuing to see more active trade in the lower end of the range, with trade failing to fully test support on the break yesterday, and finding light buying this morning. Dryness is a concern which is limiting downside on the winter wheat contracts, but that isn’t providing fresh buying yet. The Russian ruble weakness recently helps Russian competitiveness on the world market. Basis has firmed a bit on the plains in recent days but overall remains wide. The weekly export sales were mediocre at 489,399 metric tons.
On the December Kansas City support is the $4.13 1/2 low, after we washed through the 10-day and 20-day at $4.26 yesterday, which becomes resistance again.