Soybeans traded much higher earlier in the day, but settled with a gain of 5 1/4 cents as traders continue to read news reports of U.S. officials talking trade with Chinese officials. Corn and wheat were quieter with December K.C. wheat down a penny and Chicago wheat up 2 1/2 cents.
Midday: Soybeans lead at midday with corn and wheat firmer.
Corn trade is 2 to 3 cents higher at midday with light buying with action following the lead of the soybeans. The weekly ethanol report had production 1,000 barrels per day lower with production runs remaining stubbornly higher, with stocks growing 364,000 barrels. The weekly export sales report delayed until Friday. Basis will likely remain fairly sideways in the near term.
On the December chart, support is at the 50-day at $3.65, with the 10-, 20-, and 100-day just above the market at $3.67-70, which we are testing at midday.
Soybean trade is 7 to 9 cents higher at midday with trade fading a bit over the course of the morning. Meal is flat to $1 higher and oil is 5 to 15 points higher.
Export business has shown life this week, but nothing hit the daily wire after the strong overnight action. Basis should remain mostly steady as harvest pressure wraps up. South American continues to make good progress early in the crop year.
Support is found at the $8.75 area where we find the 100-day moving average. Resistance is up at $9 then the $9.06 three-month high.
Wheat trade is flat to 5 cents higher with short covering again overnight, and more mixed action during the day session. Chicago is gaining vs. the KC again today with the spread hitting new levels of width.
Kansas City wheat remains near oversold on the oscillators, which should help provide support at these levels. The dollar remains near the high end of the range with trade rebounding after the Fed comments yesterday and Brexit issues.
On the December Kansas City chart we have support at the lower Bollinger Band at $4.81, and resistance the 10-day at $4.97.