After starting the day with bearish export numbers for soybeans and wheat, and faced with Thursday’s higher U.S. dollar, markets showed little response. Corn and soybeans finished slightly higher, while the three U.S. wheats ended with small losses.
Midday: Wheat is the downside leader at midday.
Corn trade is flat to 2 cents lower at midday with light selling during the day session as we head to the long weekend The Western Corn Belt should be more open in the near term with the central part looking more open, and most rains concentrated to the east with forecasts showing more consistency, and the extended forecasts trending warmer.
Ethanol blender margins have remained strong with ethanol futures edging slightly lower this morning. South American harvest should continue to move along at a good clip. The weekly export sales were improved at 947,600 metric tons old crop, and 18,400 of new.
On the May nearby chart, support is the recent low at $3.55 then $3.52, with the 10-day at $3.61 nearby resistance, and then the 20-day at $3.66.
Soybean trade is narrowly mixed with quiet midday trade going into the three-day market weekend. Meal is flat to $1.00 lower, and oil is 10 to 20 point higher. Crush margins have faded this week with basis trying to firm in spots of the central U.S. South American currencies remain cheap as soybean harvest winds down, which should limit harvest pressure.
On the trade front, further negotiations were announced with a projected end date in late May with trade remaining in show me mode. The weekly export sales were soft at 382,100 metric tons of old crop, 21,100 of new, meal 295,300 metric tons, and 24,200 of oil.
On the May chart support is the recent low at $8.76 1/2, and then the six-month low at $8.71, with resistance clustered in the $8.93 to $8.95 range.
Wheat trade is 1 to 8 cents lower with early short covering giving way to renewed fund selling with the spreads favoring the higher protein wheats. Europe and the Black Sea area will be watched closely for further rains, with a mixed start to the year with Romanian conditions off 20% from last year.
The U.S. high Plains look drier in the near term, but moisture is very good for the moment with warmer temps to boost growth, with progress in the north likely to remain behind pace but should be more open into next week.
The dollar is sharply higher this morning. The weekly export sales were mixed at 317,700 metric tons of old crop, and 227,800 of new.
On the May KC chart support the fresh lows at $4.14, with the lower Bollinger band at $4.15, and resistance the 10-day at $4.26.