March soybeans closed higher for the sixth time in seven days, this time receiving support from the oil side of the market. Corn was slightly higher and winter wheat contracts lower in spite of a threat of flooding in the southeastern Midwest.
Midday: Soybeans are the midday leader, with corn flat, and wheat weaker.
Corn trade is 1 cent higher at midday with trade bouncing back from overnight weakness after the soft finish yesterday. Soybeans are providing spillover support along with Argentine weather.
Ethanol margins are narrowing with corn at the upper end of the range, but remain mostly positive with ethanol futures edging higher. U.S. export values should remain pretty competitive at current U.S. offers, but the daily wire has been quieter in recent days. Double-crop areas in Brazil look to build some moisture in the coming days.
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 5 to 8 cents higher at midday with trade coming back from the soft start overnight after failing to hold gains yesterday. November trade did score a new high. Meal is $1 to $2 higher and oil is 30 to 40 points higher.
The weather pattern looks to keep Argentina dry, and Brazil wet in the near term, which is limiting downside. There should volatility moving forward with the failure to hold new highs scored Tuesday, and trade filling the gap left to start the week overnight. Early Brazilian harvest will continue despite being slowed by rains, causing some crop losses.
On the March, support is the 10-day moving average at $10.08, with resistance the $10.39, which is the six-month high scored Tuesday.
Wheat trade is flat to 6 cents lower with soft wheat holding up the best at midday; with eastern U.S. growing areas are in line for rain in the near term, but dry spots persisting to the west. The dollar is higher again at midday, but remains below 90 on the index. The Russian crop will continue to be watched with less cover than usual, with Black Sea values continuing to edge higher.
On the March Kansas City wheat chart, support is at the 200-day moving average at $4.71 which we are below at midday, and then the 20-day at $4.65 with resistance the recent high at $4.84 1/2.