December corn fell 3 1/4 cents to a new two-month low of $3.66 3/4, while January soybeans dropped 6 1/2 cents to a new one-month low of $9.05, both pressured by favorable crop weather in Brazil and Argentina. Winter wheat contracts showed small gains, but March Minneapolis wheat was down 2 3/4 cents.
Midday: Mixed trade at midday, with corn at the lows of the day.
Corn trade is 3 to 4 cents lower at midday with trade still trying to confirm a low for the move with little fresh news to entice buyers. Ethanol margins remain stable to better with the weekly report edging production 3,000 barrels per day higher, and stocks dropped 471,000 barrels to the lowest levels in almost 3 years.
Basis has held up well with the slow pace of harvest so far with propane shortages still noted, but warmer weather should help through this week with midweek rains slowing progress in some areas. South America should see areas of improvement as planting progresses, especially in Brazil with no major issues on the horizon for now.
On the December contract, support is the $3.66 lows from this a.m. along with the lower Bollinger Band at $3.65, with resistance the 20-day at $3.79, along with heavily oversold conditions.
Soybeans are flat to 1 cent higher with light profit taking vs. recent shorts overnight with little fresh news otherwise as harvest winds up and trade progress remains stalled. Meal is flat to $1.00 lower, and oil is 35 to 45 points higher. The ral remains at the lows with planting hitting the homestretch in Brazil.
Bean basis has moved to a more sideways trend short term with pockets of firmness showing up at crushers. On the January chart, support is the lower Bollinger Band at $9.06, which we are back above with resistance well above the market at $9.27 where the 20-day moving average, along with oversold conditions.
Wheat trade is narrowly mixed with trade trying to build on the strong Tuesday finish for the second week in a row. The Chicago/Kansas City December spread is 86 cents with choppy action to start the week, Chicago also holding an 10 cent premium to Minneapolis.
The corn/HRW spread has widened back to 57 cents, pushing wheat further from the feed bunk. The weaker dollar could help more if sustained vs. world values this week. Export business will be watched with more Mediterranean tenders going out this week. The extended forecast hints at some relief for the drier western areas.
The December Kansas City chart support is the lower Bollinger Band at $4.13, with resistance the 20-day at 4.23 which we need a second close above and then the recent highs at $4.38.