Wednesday’s trade was marked by commercial buying throughout the soy complex and in two of the three U.S. wheats — bullish votes of confidence for those crops. December corn ended up 2 1/2 cents, a polite participant in the day’s buying spree.
Midday: Soybeans and wheat are midday leaders, with corn remaining around unchanged.
Corn futures are flat to 1 cent higher at midday with trade grinding sideways on little fresh news and ongoing harvest. Wetter, near-term weather may slow harvest progress in many areas this week, while other areas are moving along quickly. The weekly ethanol report showed production 31,000 barrels per day higher, stocks were down 148,000 barrels with futures remaining at the bottom of the range at 1.25.
Corn basis will likely see more pressure from harvest here in the near term. Crude is higher and back above $70 with the dollar weaker, providing some outside market support.
On the December chart support is at the fresh contract low printed Tuesday at $3.42 3/4 with the 10-day at $3.56 noted nearby resistance.
Soybean futures are 6 to 8 cents higher at midday with trade trying to build support after the fresh lows scored this week amid harvest pressure and trade concerns. Meal is $4 to $5 higher and oil is narrowly mixed. Soybean basis remains historically wide across the belt with storage and shipping concerns continuing to dominate.
Crush margins remain strong in the near term. Early planting in South America is underway with conditions on the dry side going in, but no major concerns expected for a while and the Brazil and Argentina currencies remain historically cheap with the real falling back to its lows. U.S. and Brazil offers are near parity to China even with the tariffs with broader Asian export interest in recent days and Brazil running low on exportable bushels.
On the November chart, support is fresh lows at $8.12 1/4 scored Tuesday, with the 10-day at $8.31 and the 20-day at $8.38 noted resistance levels.
Wheat futures are 6 to 9 cents higher at midday with better buying interest continuing and world values continuing to work higher on the longer-term export tenders. The U.S. dollar is at the bottom of the recent range.
Russia will continue to work on spring wheat harvest and winter wheat planting with mixed moisture. Australia looks to have more mixed weather in the near term with longer-term dryness still an issue as we get closer to harvest there, and some frost in Western Australia. Matif milling wheat is firmer this morning.
On the December KC chart we have support at the lower Bollinger Band at $4.97 with resistance 10-day at $5.16, which we are above at midday with the 20-day at $5.29, the next round higher.