The March contracts of both, Chicago and K.C. wheat fell to new contract lows Friday as buyers remain difficult to locate. Otherwise, Friday’s trading was quiet with January soybeans down 2 1/4 cents after rain fell in western Argentina and March corn up 1 1/4 cents.
Midday: Mixed action at midday, with corn leading.
Corn trade is 1 cent higher at midday with trade trying to build support at the lower end of the range in quiet action so far. Ethanol margins are seeing some support with the stronger energy complex and slightly higher ethanol futures to go with the slightly firmer corn board.
On the March chart support is the contract low at $3.48 3/4 printed three weeks ago with resistance at the $3.54 20-day moving average then the 50-day moving average at 3.59. The one-month range is 15 cents, with another test of the lows possible during the day session today if momentum fails heading towards the close.
Soybean trade is 3 to 7 cents lower at midday with trade failing to hold the overnight strength despite fresh export sales. Meal is $3 to $4 lower and oil is 5 to 15 points lower. South American weather looks better in the 10-16 day, while the near term remains fairly dry. The USDA announces 268,000 metric tons sold to China, and 129,000 sold to unknown.
On the January chart support is at the $9.89 20-day moving average, but we have edged below that area at midday, then the 100-day at $9.81. Resistance is at the $9.96 10-day which we tested overnight, then the $10.15 four-month high reached on Tuesday.
Wheat trade is narrowly mixed at midday with early gains fading again with trade remaining fixed in the lower end of the range in fairly quiet action. The plains are turning colder with moisture looking to remain limited; this should limit downside. The Australian harvest should continue to push on this week with overall harvest pressure starting to fade. Russian remains the dominant origin in the world export markets.
On the March Kansas City contract, chart support is the $4.18 3/4 fresh contract low scored on Thursday, with the 20-day at $4.35 noted chart resistance.