Chicago wheat extended the rally that began in early September, which had seen March wheat rally $1.34 and to 15-month highs, but that early rally did not last. Profit-taking at midsession led to a lower close. Corn and soybeans reluctantly moved higher early Wednesday, but could not muster follow-through buying, with soybeans finishing lower.
Corn trade is 1 to 2 cents higher at midday with trade back to the top end of the range after the soft start to the week with rangebound trade continuing. Ethanol margins have remained stable but poor with ethanol futures struggling again this morning. U.S. weather will likely limit short-term movement in most areas with warmer weather expected to be on the way into the end of the month.
Basis should remain sideways to slightly firmer. The export wire remains quiet. On the March contract support is the 20-day at $3.86, with resistance the recent high at $3.92.
Soybeans trade is 2 to 3 cents higher at midday with trade trying to push back from the low end of the range with support from wheat and corn, while trade continues to look for new export business. Meal is narrowly mixed, and oil is 40 to 50 points higher.
The Brazilian real remains very cheap as well hurting US export competitiveness. South American weather remains within the recent pattern for soybeans as well with early harvest underway.
Basis has remained firm at processors with the strong crush margins. The March chart support is at the December gap at $9.15 with resistance the 20-day at $9.40.
Wheat trade is 5 cents lower to 1 cent higher with Chicago scoring news highs overnight before reversing at midday. Cold threats remain limited for the plains with most of the moisture staying to the east, with western snow cover remaining limited, and warmer temps expected to return to most short term.
Kansas City is at an 86 cent discount to Chicago, while Minneapolis is back to a 18 cent discount. Weekly export inspections were rangebound at 435,129 metric tons. The March Kansas City chart support is the 20-day moving average at $4.83, with resistance the upper Bollinger Band at 5.07.