March contracts of corn and soybeans were steady to lower Tuesday, but that did not stop March Chicago wheat from gaining 6 1/4 cents and posting a new six-month high. The March U.S. dollar index is slightly higher and most other commodities are trading higher with a new trade agreement expected sometime Wednesday.
Corn trade fractionally lower at midday with light two-sided trade so far as we chop around at the upper end of the range, a couple cents below the recent highs. Ethanol margins remain tight, with corn and ethanol futures edging higher, while unleaded is at the lower end of the recent range.
U.S. weather looks to be more active to the east in the U.S., allowing for more movement west for now, while South America remains mixed but without widespread issues short term. Basis has remained sideways.
On the March contract support is the 20-day at $3.86, which we closed back above Monday, and resistance is the upper Bollinger Band at $3.92.
Soybeans trade is 1 to 3 cents higher at midday with rangebound action continuing with trade trying to keep ahead of nearby support with some new export sales finally surfacing with 120,000 metric tons of new crop on the daily wire. Meal is $0.50 to $1.50 lower, and oil was 15 to 25 points higher.
The Brazilian real found footing today, but remains cheap vs. the dollar. South American weather remains within the recent pattern for soybeans as well. Basis has remained firm at processors with the strong crush margins.
The March chart support is at the 20-day at $9.44 which we are just below at midday with resistance at the $9.55 upper Bollinger Band.
Wheat trade is 2 cents lower to 7 cents higher overnight with Chicago leading with trade pressing nearby resistance again for the winter wheats with reports of export restrictions by Russia. Cold threats remain limited for the plains with most of the moisture staying to the east, with western snow cover remaining limited, while Russia has been warmer and drier than usual.
Spread action is steady to a little wider, putting Kansas City at a 73 cent discount to Chicago, while Minneapolis is back to a 10 cent discount. The March Kansas City chart support is the 20-day moving average at $4.76, with resistance the upper Bollinger Band at 5.01.