December corn fell another 6 1/4 cents Wednesday, settling within a dime of its contract low as noncommercial liquidation continues after Monday’s USDA report. November soybeans closed down 11 cents and Dow Jones Industrials are trading sharply lower, showing ongoing bearish pressure from concerns about the trade war with China.
Corn trade is 1 to 2 cents lower with early gains fading yet again as trade looks to hold the gap areas from yesterday. The forecast looks to be a non-issue in the near term for most.
Ethanol margins remain poor with futures moving to $1.26 with production up 5,000 barrels per day, and stocks were up 766,000 barrels with more plants being idled in the east. Basis is mixed post report with harvest likely to expand soon in southern growing areas.
On the September nearby chart support is likely the $3.66 low with $3.54 below that, with resistance the lower Bollinger Band at $3.72.
Soybean trade is 3 to 5 cents lower at midday with trade fading without confirmation of fresh ag interest in the trade thaw along with negative currency effects. Meal is $2.00 to $3.00 lower with oil 10 to 20 points higher. Oil remains elevated relative to meal, but meal has gained this week.
Basis remains flat overall. The real has scored fresh lows, elevating returns in dollars to Brazilian farmers nearby. The weather looks to be a short-term non-issue for soybeans.
The September chart support is the 10-day at 8.64, with the lower Bollinger Band at $8.45 below that, with the next level of resistance the 20-day at 8.76 which have tested but not held.
Wheat trade is 1 to 3 cents higher, with Kansas City trying to take the lead at midday. The Kansas City/Chicago spread is back to 88 cents, fading back from the highs again The corn/HRW spread is back to 16 cents. Chicago Sep-Dec is back towards 4 cents of carry.
Spring wheat harvest should expand with winter wheat just about wrapped up, with Europe continuing to move towards spring wheat harvest as well, with areas of delays with U.S. hard red wheat competitive on the world markets and feed markets. T
he September Kansas City chart support is the new low at 3.83 3/4 with the first resistance the 4.00 area.