It is difficult to say what grain traders were doing Friday, but buying and selling grains was not at the top of their lists as corn, soybeans, and winter wheat all posted tiny changes for the day with not much volume. Talk of an improving economy helped the March U.S. dollar index trade higher while most commodities other than grains also traded higher.
Midday: The grains trade is narrowly mixed at midday.
Corn trade is flat to 2 cents lower at midday with light two-sided trade so far. Ethanol futures have made new lows this morning, hurting producers and supporting blenders. Basis and carry look to stay sideways into the end of the week. USDA announced 134,503 metric tons of corn sold to Costa Rica.
The expiration of the December contract could encourage more selling to test the $3.36 area of expiration. On the March chart, support is the contract low at $3.47 printed this morning with resistance at the $3.53 20-day moving average, then the 50-day moving average at $3.58.
Soybean trade is narrowly mixed at midday with light buying showing up after the selling seen so far this week, but with momentum unable to consolidate. Meal is flat to $1 lower, and oil is 20 to 30 points higher.
South American weather should see more rain in the near term with planting wrapping up and moisture deficits for Argentina. The monthly crush report is expected to show 160 million to 163 million bushel usage and tighter oil stocks on strong biodiesel production.
Basis and carry have been sideways for soybeans this week. The daily wire showed 126,000 metric tons sold to unknown and 257,000 sold to China. On the January chart, support is the recent low at $9.66 scored this morning. Resistance is at the $9.76 200-day.
Wheat trade is mixed at midday with the spring wheat the leader this morning. The trade is trying to pull further away from the lows, and fading on the first test of nearby resistance. The Plains continue to be dry in the short term. Some better moisture is expected in the extended forecast with a winter storm around Christmas.
Russia is also looking at buying from farmers to support domestic prices, along with keeping exports boosted. The daily wire had 130,000 metric tons of hard red wheat sold, illustrating improving competitiveness on the world stage.
On the March KC contract, chart support is the $4.10 1/2 fresh contract low scored on Monday, with the 10-day at $4.20 first chart resistance.