Soybeans continued to wilt under the pressure of renewed veg oil weakness, the lack of China buying interest, the new virus in China, and more record-large projections for Brazil soy production. Corn rallied following the announcement of 11.2 mb of corn sold to Guatemala and unknown destinations. Traders are hoping that the unknown might be China.
Corn trade is 3 to 4 cents higher at midday with trade scoring a new high for the move before fading slightly at midday. Ethanol margins continue to decline with flat futures action post report with production down 46,000 barrels per day, with stocks up 1.025 million barrels, putting stocks ahead year on year.
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 showed some lift with 114,224 metric tons sold to Guatemala, and 141,000 metric tons sold to unknown. On the March contract support is the 20-day at $3.86, with resistance the new high at $3.93 3/4.
Soybean trade is 3 to 5 cents lower with trade continuing to bore into resistance levels with export support lacking and South American progress remaining robust. Meal is flat to $1.00 higher and oil was 35 to 45 points lower.
The Brazilian ral remains very cheap as well hurting U.S. export competitiveness, although it has gained slightly this morning. South American weather remains within the recent pattern for soybeans as well with early harvest underway.
Basis has remained steady at processors with the strong crush margins. The March chart support is at $9.00 with psychological support there, and resistance is the lower Bollinger band at $9.11.
Wheat trade is narrowly mixed with trade working to hold the upper end of the range after the reversal yesterday and overbought conditions along with little fresh news.
Cold threats remain limited for the Plains with most of the moisture staying to the east, with western snow cover remaining limited, and warmer conditions expected to return to most short term.
Kansas City is at an 86 cent discount to Chicago, while Minneapolis is back to a 20 cent discount. The March Kansas City chart support is the 20-day moving average at $4.85, with resistance the upper Bollinger Band at 5.05.