January soybeans fell 18 1/2 cents Monday after the U.S. and China could not come to terms for a concluding statement at the weekend’s Pacific Rim summit. Corn and all three wheats also finished lower, influenced by soybeans and the slow pace of wheat exports.
Midday: Soybeans and wheat lead trade lower at midday.
Corn trade is 2 cents lower at midday with trade seeing follow-through selling. At midday we are at fresh November lows. The ethanol production margins will remain poor but Thanksgiving travel should be supportive this week. The weekly export inspections were softer at 797,459 metric tons. The USDA announced 138,000 metric tons sold to South Korea on the daily wire. Harvest should be past 90% on the weekly crop progress report due out this afternoon.
Corn basis should be sideways to firmer the rest of the month if the board says sideways to weaker. On the December chart we edged just below the 50-day at $3.65 with the lower Bollinger Band at $3.61 below that now support. Resistance above the 50-day is at the $3.68 20-day moving average.
Soybean trade is 16 to 18 cents lower at midday and challenging support levels. Meal is $5 to $6 lower and bean oil is narrowly mixed.
Export business has picked up recently with the trade watching for friendly news. South American continues to make good progress with limited weather concerns at this juncture. The weekly export inspections were ok at 1.054 million metric tons but the number did not help the futures recover. Harvest progress should be past 95% on the weekly crop report this afternoon.
Support is found at the $8.75 area where we find the 100-day moving average which we are testing at midday. Resistance is the 10-day at $8.83.
Wheat trade is 1 to 10 cents lower with trade falling to new lows for the move with spring wheat holding the best. Chicago is the spread vs. KC this morning. Kansas City wheat remains very oversold on the oscillators which should help provide support at these levels but we will need some positive action to confirm. The dollar has faded with better action from the pound and euro.
Weekly export inspections showed improvement at 509,118 metric tons. Weekly crop progress will likely show steady conditions with planting and emergence remaining behind normal.
On the December Kansas City chart, we have support at the lows at $4.73, and resistance the 10-day at $4.92.