Soybeans lead at midday, albeit off the morning highs with corn flat and wheat lower.
Corn trade is narrowly mixed with two sided trade; corn is looking to consolidate after the recent gains. Mother Nature is providing some wet harvest conditions which are noted slowing harvest progress in many areas, with a few spots moving along quickly with the advanced maturity. Ethanol margins remain tight with futures edging a bit higher this morning, with blender margins remaining strong with the rest of the energy complex.
Corn basis will likely see more pressure harvest here in the near term but delays could limit pressure in some areas. The weekly crop progress had conditions 1% higher at 69% good to excellent, and 12% poor to very poor with 97% dented, 5 percentage points above average, 72% mature vs. 53% on average, and 16% harvested vs. 11% on average.
On the December chart the 10-day, at $3.52, and 20-day at 3.57 today are our support levels. Resistance is at the $3.67 1/2 50-day then the $3.69 3/4 one-month high.
Soybean trade is 5 to 8 cents higher with trade fading from the 17 cent higher move this morning with trade focusing on improved export possibilities to South America. Meal is $2.50 to $3.50 higher and oil is flat to 10 points higher.
Soybean basis remains historically wide across the belt with storage and shipping concerns continuing to dominate with the recent uptick in fresh sales needing to be sustained in the near term. Crush margins remain strong with oil starting to show broader strength with palm oil firming as well.
Early planting in South America is underway with conditions on the dry side going in but no major concerns expected at this juncture with Southern Brazil turning wetter. The Brazilian and Argentine currencies remain historically cheap.
The weekly crop progress was 1% better at 68% good to excellent, and 10% poor to very poor with 71% dropping leaves vs. 57% on average and 14% harvested vs, 8% on average.
On the November chart support is the 20-day at $8.37 with the 10-day below that at $8.35, with resistance the recent high at $8.58 scored this morning.
Wheat trade is 1 to 7 cents lower at midday with range bound trade continuing with trade slowly building a better trend but unable to sustain broader strength in recent days. The U.S. dollar is at the bottom of the recent range with better footing expected ahead of the Fed rate hike anticipated to be coming on Wednesday.
Russia will continue to work on spring wheat harvest and winter wheat planting with little change in the weather patterns, with harvest in Canada trying to finish as well. Australia looks to continue the recent weather pattern with more feed grain imports possible. Matif wheat is slightly lower this morning.
The weekly crop progress showed spring wheat harvest complete, and winter wheat planting at 28% complete vs. 26% on average. On the December Kansas City chart, we have support at the 10-day at $5.19 with resistance at the 20-day at $5.25, which we have edged below this morning.
The U.S. stock market indices are firmer with the Dow futures up 120. The interest rate products are firmer. The dollar index is 7 lower. Energies are firmer with crude up 0.12. Livestock trade is narrowly mixed. Precious metals are mixed with gold up $1.50.