For the second consecutive day, May Chicago wheat was the leading percentage gainer among grain contracts, gaining 9 1/2 cents Friday after a week of rough weather conditions in the western Plains. May soybeans were up 10 3/4 cents and corn was up 3 cents, both finishing higher on the week after a lower start on Monday.
Midday: Trade is broadly firmer at midday.
Corn trade is 2 to 3 cents higher at midday with trade following soybeans higher and testing the next level of resistance. South America crop progress should remain uneventful in the near term. Ethanol margins remain under pressure for producers with ethanol futures firming with corn this week, moving back to the higher end of the range.
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 along with poor road conditions.
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 with the Mississippi and Missouri Rivers seeing big inflows.
On the May chart support is the 10-day at $3.69, with the next level of resistance the 20-day at $3.73 1/2.
Soybean trade is 6 to 8 cents higher at midday with trade still working to consolidate above $9.00 on the May contract with better short covering developing. Meal is 2.50 to 3.50 higher and oil is flat to 10 points higher. Even with the final summit delayed, it does look like trade progress has been scored in regards to intellectual property.
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 record February crush expected today.
On the May chart support is at the $8.89 1/2 low printed Tuesday with resistance at the $9.01 10-day moving average, which we are above at midday, with the 20-day at $9.10 the next level up.
Wheat trade is 4 to 5 cents higher with active trade expected into the weekend, with the winter wheats looking to score good weekly gains and consolidate the reversal. Spreads are pretty steady this morning. There has been more talk of Ukraine running out of exportable near term supplies as well.
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 $4.36, which we are back above at midday, with the 20-day at 4.46 the next round up.