March soybeans closed up 5 cents and March soybean meal ended up $3.20, disappointing new bullish traders after the two were trading up 17 1/2 cents and $12.20 respectively, earlier in the day. Corn was modestly lower and Chicago wheat fell back 8 1/2 cents in the face of a higher U.S. dollar.
Midday: Soybeans are the midday leader while wheat turns lower.
Corn trade is flat to fractionally higher at midday following the lead of the soybeans with a new high for the move being scored by a penny on the March contract. Argentine weather is still one of the main market items. Ethanol margins are narrowing but should remain positive enough to keep the plants running at a good clip.
U.S. export values should remain pretty competitive at current U.S. offers. The weekly export inspections were in line with recent weeks at 938,099 metric tons.
On the March chart support is at the 10-day at $3.66 with the 20-day at 3.62 below that, with the 200-day moving average at $3.76 the highest moving average and major resistance.
Soybean trade is 2 to 9 cents higher at midday with trade reacting to the continued dry forecast in Argentina but we are off the new highs at midday. Brazil remains in generally good shape weather wise, which has cooled off the strength as of midday. Meal is $8 to $9 higher and oil is 20 to 30 points higher.
There should be volatility moving forward with the moves to new highs for the move to go along with an 8 cent gap left overnight with more acres moving into the heart of the growing season in South America. Early Brazilian harvest will continue despite being slowed by rains, causing some crop losses. Weekly export inspection were a bit softer at 960,066 metric tons.
On the March, support is the 10-day moving average at $9.96, with resistance at $10.39, which is the six-month high scored this morning.
Wheat trade is flat to 5 cents lower at midday for the winter wheat, while spring wheat works to hold onto the $6.00 area nearby in steady trade. The dollar is sharply higher at midday, but remains below 90 on the index. The Plains look to remain dry in the short term, with the best chances for rain to the east, with some popup showers in Oklahoma.
The Russian crop will continue to be watched with less cover than usual, and India shaping up to potentially import more bushels the coming year. Weekly export inspections were in line with recent weeks at 422,288 metric tons.
On the March Kansas City chart, wheat support is at the 200-day moving average at $4.72, and then the 20-day at $4.60 with resistance the recent high at $4.84 1/2.