Wheat leads broadly firmer trade at midday with some 20 cent gains!
Corn trade is 2 cents higher at midday but still in slower trade; the daily range has been less than 3 cents. South America crop progress looks to remain on track for corn with some shorter-term dryness possible in Brazil.
Ethanol margins remain under pressure for producers, but blender margins continue to improve with ethanol futures to $1.30 on light strength and unleaded futures slightly weaker. Corn basis will be supported by ongoing weather issues nearby with Gulf offers struggling along with logistics issues building with the river system to see more stress from melting snow.
Early planting is going in the south as well with weather concerns likely to build in the north into March with flooding the main concern.
On the May chart support is at the $3.61 contract lows which were tested this morning. Resistance is at the $3.69 10-day moving average.
Soybean trade is 3 cents higher in quiet midday action. Meal is .50 to $1.50 higher and oil is flat to 10 points higher. The trade is looking for more confirmation of Chinese buying and trade progress, along with comments of oversold conditions, and there was nothing on the daily wire today.
South America weather should maintain the recent pattern in the coming days with Brazil harvest moving along and normal progress in Argentina. Crush margins remain strong overall with meal still holding $300 with a test of $300 this a.m. Trade progress has not added much news the last few days with no final summit scheduled yet.
On the May chart, support is at the $8.89 1/2 low printed yesterday with resistance at the $9.05 10-day moving average.
Wheat trade is 10 to 20 cents higher with aggressive short covering this morning, instead of the fund selling of recent days. Chicago is the leader, followed by Kansas City, with Minneapolis giving back the spread gains of yesterday. Export news has been quieter lately on the world front.
The dollar has come back to 96.90 on the index with choppy trade starting to turn lower. Cooler than normal weather will keep wheat development slow on the plains, and spring wheat planting likely to start slow this year. Wheat basis varies widely on product and location.
On the May Kansas City chart support is low at $4.18 3/4 fresh low with resistance at the 10-day at $4.37, which we are testing at midday.
The U.S. stock market indices are mixed with the Dow 90 points lower. The interest rate products are weaker. The dollar index is 28 lower. Energies are mixed, with crude 0.35 higher. Livestock trade is mostly lower. Precious metals are firmer with gold up 6.40.