January soybeans closed up 5 1/4 cents Friday and finished with a double-digit gain on the week, helped by trade optimism and ongoing support from the vegetable oil market. March corn was unchanged and March KC wheat dropped 4 1/2 cents in a quiet retreat from last week’s high.
Midday: Soybeans lead at midday with trade giving back early gains.
Corn trade is 1 to 2 cents lower at midday with trade turning lower during the day session as early buying evaporates again. Ethanol margins have remained steady with the blenders gaining the benefit of the crude and unleaded move this week while ethanol futures remain sideways.
Basis has held up well with some strength showing up at processors again. The USDA reported 245,872 metric tons of corn sold to Mexico.
On the March contract support is the lower Bollinger band at $3.74 which we have held just above, with resistance the 20-day at $3.80.
Soybeans are 3 to 4 cents higher at midday with support from short covering and reports that China was going to allow further tariff-free imports of soybeans but early gains failed to hold again. Meal is $2.00 to $3.00 lower and oil is 60 to 70 points higher with meal moving back below $300 a ton. The real remains cheap vs. the dollar with Brazilian weather still in good shape, with Argentina more mixed.
Bean basis has moved to a more sideways trend short term with pockets of firmness showing up on the break. January chart support is the lower Bollinger Band at $8.63 which we are finally pulling away from, with resistance well above the market at $8.98 where the 20-day moving average, along with exceptionally oversold conditions starting to ease.
Wheat trade is flat to 4 cents lower with Minneapolis trade leading at midday with trade boring back into support levels. The Chicago/KC March spread is back to 85 cents. Chicago also holding a 6 cent premium to Minneapolis which has narrowed sharply this week. The dollar rebounded today, adding pressure as well.
Export business has been quiet so far this week. The forecast dries the Plains back out short term, with little change to world conditions north and south this week.
The March KC chart support is the lower Bollinger Band at $4.23, and resistance the 20-day at 4.35.