March soybean meal closed up $3.20 Friday, its fifth consecutive gain in the aftermath of last week’s USDA report and helped by ongoing concerns of dry weather in Argentina. Row crops ended with small gains while all three wheats finished a little lower.
Midday: Soybeans are the midday leader, with corn flat, and wheat lower.
Corn trade is flat to a penny higher at midday with trade pulling back from an early test of resistance. Ethanol margins are slightly tighter with firmer corn and softer energy values.
Corn basis set back slightly on increased selling on the futures rally with carry steady. Warmer weather should help to throttle back livestock feeding coming forward. The weekly export sales were strong at 1.89 million metric tons, but at midday the market is acting as if this is old news.
On the March chart support is the 50-day at $3.52 we are right around at midday, with the 20-day at $3.50 below that, and resistance at the 100-day at $3.58.
Soybean trade is 4 to 7 cents higher with trade closing in on the next round of resistance with light buying continuing and trade has pulled back from a test of the 50-day moving average. Meal is $3.50 to $4.50 higher and oil is narrowly mixed. South American weather looks to continue the recent pattern in the near term with the north and south dry, and the middle wet, with the most concerns in Argentina.
Basis and carry remains mostly sideways. Weekly export sales were improved at 1.24 million metric tons of beans, 281,000 of meal, and 27,900 of oil. The export wire was quiet again this morning, with only new crop sales on the wire so far this week.
On the March, support is the 10-day and 20-day $9.64 that we have tested this morning and resistance the 50-day at $9.84.
Wheat trade is flat to 4 cents lower with trade chopping lower going into the weekend. Warmer weather should be the rule in the near term, but moisture will likely remain short in the near term for much of the Plains.
The dollar remains below 91 on the index with the trend still lower, with rallies being sold. The gap between U.S. and Russian origin has narrowed but remains more favorable to Russia with U.S. export sales remaining weak at 153,000 metric tons.
On the March Kansas City contract, chart support is the lows at $4.10, with the weekly low of $4.21 becoming nearby support with the 20-day at $4.29 as the first level of resistance with the 50-day at $4.30 above that, which we tested this morning.