After making new contract lows earlier this week, March Chicago and K.C. wheat contracts got a lift of light commercial buying Wednesday, ending up 6 cents and 5 cents respectively. March corn managed a slight gain and January soybeans were up 3 1/2 cents, both on unusually low volume.
Midday: Wheat leads lightly higher trade at midday.
Corn trade is flat to 2 cents higher at midday with trade staying near the bottom of the range after scoring fresh lows Tuesday after the initial post-USDA report rally failed. The WASDE report had carryout at 2.437 billion bushels, down 50 million bushels from last month on ethanol production increases, with world stocks at 204.1 million metric tons, up 0.2 mmt from last month.
The weekly ethanol report showed production down 19,000 barrels per day and stocks down 170,000 barrels with gasoline demand edging higher. Ethanol futures are flat at midday, remaining on the lows.
On the March chart, support is the contract low at $3.47 1/2 printed Tuesday with resistance at the $3.53 20-day moving average then the 50-day moving average at $3.58.
Soybean trade is flat to 3 cents higher midday with trade working at the lower end of the range yet again. Meal is flat to $1 higher, and oil is 25 to 35 points lower. South American weather looks better with rains expected in the next seven days for some of the driest areas with trade watching closely for follow-up rains after that.
The WASDE report raised domestic carryout to 445 million bushels, up 20 mb from last month on slower exports, with world stocks at 98.3 million metric tons, up 0.4 mmt from last month. The export wire has been more active in recent days, with nothing announced on Wednesday.
On the January chart, support is the 200-day at $9.76. Resistance is at the $9.93 10-day.
Wheat trade is 3 to 5 cents higher at midday with trade finding light short-covering with trade hovering at the lower end of the range. The Plains are showing some better moisture in the longer-term forecast while remaining dry in the short term.
The Australian harvest will be nearing effective completion soon. Russian remains the dominant origin in the world export markets, with some production estimates still rising for them. The WASDE report showed stocks at 960 million bushels, up 25 mb from last month, and world stocks at 268.4 million metric tons, up 0.9 mmt from last month.
On the March KC contract, chart support is the $4.10 1/2 fresh contract low scored on Monday, with the 20-day at $4.28 noted chart resistance.