December corn and January soybeans saw slight gains on a quiet day of trading, but in the case of soybeans, it was enough to keep prices above their 100-day average. All three wheats were modestly lower, also on light volume.
Midday: Corn is flat to higher, with wheat and soybeans lower at midday.
Corn trade is flat to 2 cents higher with choppy trade continuing as trade works to build broader support at the lower end of the range with sustained buying in short supply so far this week. Ethanol margins remain stable, with the weekly ethanol report pushing production 16,000 barrels per day higher, with stocks down 883,000 barrels, helping to firm ethanol futures at midday.
Basis has held up well with the slow pace of harvest so far with propane shortages still noted, but warmer weather should help. South America should see areas of improvement as planting progresses, especially in Brazil.
On the December contract support is the $3.71 lows from October, with resistance the spike high from Friday at $3.83 3/4.
Soybeans are 1 to 3 cents lower with trade still struggling at the lower end of the range with negative trade news and South American hanging over the market. Meal is $0.50 to $1.50 lower and oil 15 to 25 points higher. The real remains at the lows, but China continues to buy with another 129,000 metric tons.
Bean basis has moved to a more sideways trend short term with pockets of firmness showing up at crushers. South America should make more progress through the week with improved weather, and Brazil heading towards the planting homestretch.
On the January chart, support is the lower Bollinger Band at $9.11, which we are just above with resistance well above the market at $9.33.
Wheat trade is 2 to 5 cents lower with trade back to the lower end of the range after failing to hold gains yesterday. The Chicago/Kansas City December spread is 87 cents with wider action after bouncing off the lower end of the range with a dime swing the last two days.
The corn/HRW spread has narrowed back to 44 cents, getting wheat back towards ratios. Russian values remain elevated with Australia dry, but the U.S. is still struggling to capture a larger share, with the dollar remaining at the upper end of the range.
The December Kansas City chart support is the lower Bollinger Band at $4.14, with resistance the 20-day at 4.23.