A fourth day of corn export sales announced and an easing of coronavirus concerns helped March corn close up 6 cents Tuesday. March soybeans were down 2 1/4 cents and all three wheats were modestly lower, but other commodities were mostly higher.
Corn trade is 4 to 5 cents higher at midday with short-covering and fresh export sales adding support to the market. Ethanol margins remain range bound with the energy complex finding some footing for stability and ethanol futures edging slightly higher. U.S. weather should be better in the short term.
Basis should remain sideways. The daily wire has been more active the past few days with the trade looking for further confirmations. On the March contract, support is the lower Bollinger band at $3.79 and then recent lows at $3.77. Resistance is the top of the fresh gap at $3.84, which we have filled at midday, with the 20-day at $3.87 above that.
Soybeans trade is 2 to 3 cents lower. The trade is working to test the lower end of the range again this morning with support holding so far. Meal is flat to $1.00 lower, and oil is flat to 10 points lower. The Brazilian real remains very cheap, as well, hurting U.S. export competitiveness on the world front. South American weather remains within the recent pattern for soybeans, as well, with early harvest underway.
Basis has remained steady to firmer at processors with the strong crush margins. The weather is likely starting to allow for better movement short term. The March chart support is the $8.82 contract low, with resistance the $9.00 area.
Wheat trade is 2 to 5 cents lower at midday with trade fading a bit. Range-bound action is continuing after holding up better on Monday. Cold threats remain limited for the Plains with limited potential for moisture in the short term.
KC is at an 88-cent discount to Chicago near the top of the recent range, while Minneapolis is back to a 25-cent discount. Russian values remain elevated with trade looking for confirmation of various milling grades to China in the short term. The March KC chart support is the lower Bollinger band at $4.71, and resistance is the 20-day at $4.87.