Friday finished with modest gains in soybeans and winter wheat, while corn and spring wheat closed lower. Chicago wheat posted the biggest gain among grain contracts this week with some help from a 1% drop in the U.S. dollar index.
Midday: Soybeans and wheat lead mixed trade at midday.
Corn trade is 3 cents lower at midday with range-bound action continuing ahead of the weekend. Fresh bullish news lacking and light harvest pressure is noted. Harvest will remain slow but should show progress through the end of the week before wetter weather returns to the east with beans getting more attention this week.
Ethanol futures are flat at midday keeping margins stable. Basis remains flat to weaker with anticipation of more inbound bushels soon. South American corn planting but is running behind normal with mixed weather views at this early juncture in the Southern Hemisphere growing season. The weekly export sales were soft at 368,800 metric tons.
On the December contract support is at the 20-day moving average at $3.86 1/2; the market is flirting with the $3.92 10-day here at midday. Chart resistance is at the upper Bollinger Band at 4.02.
Soybeans are 4 to 6 cents higher at midday gaining back some of the noted long profit-taking losses seen earlier this week. Meal is $2.50 higher with soybean oil up 12 points. The soybean market is overbought and seeing consolidation after the September into October strength with the momentum into Monday following the friendly USDA report last week.
Crush margins remain solidly positive. The ral has gained slightly against the dollar this week. Bean basis should see pressure as combines continue to roll. South America should make more progress this week and into the second half of the months with some weather issues remaining and planting pace solidly behind.
The weekly export sales were strong at 1.6 million metric tons, 152,900 of meal, and 4,000 pounds of oil. On the November chart, support is the 10-day at $9.28 with the upper Bollinger Band at $9.49 as resistance.
Wheat trade is 2 cents lower to 2 cents higher with light selling overnight after new highs were scored for the move on the back of Chicago strength. The Chicago/Kansas City December spread is 97 cents with trade hitting new highs again. Remaining spring wheat will likely not be cut at this point.
The corn/HRW spread has widened back to 38 cents from 13 cents at the recent low, working wheat back out of rations. Export action continues to be dominated by Black Sea origin with more sales to Egypt and neighboring countries this week. The weekly export sales remained in the recent range at 395,100 metric tons.
The December Kansas City chart support is the 10-day at $4.18 with the 100-day at 4.40 the next level up with the upper Bollinger Band right at overnight trade at $4.31.