On a day when most commodities were mixed, May corn took a break from recent selling and closed up 3 3/4 cents before facing Wednesday’s energy inventory report and Thursday’s WASDE report. May soybean meal fell to a new one-month low, while May soybean oil closed at a new three-week high, helped by the anticipation of lower palm oil production.
Midday: Corn is 4 to 6 cents higher, soybeans are 3 to 4 cents higher and wheat is 2 to 7 cents lower.
Corn trade is 4 to 6 cents higher at midday Tuesday with light buying as trade looks to ease oversold conditions amid broader market optimism.
Ethanol margins remain very poor, with trade still needing to find a level of demand that it is comfortable with in the short term, with demand needing to come back more than the need for oil prices firming, along with storage running short.
Corn basis will likely remain sideways for now with much of the slowdown priced in at this point. Warmer weather will aid early week progress. On the May contract support is the lower Bollinger band at $3.21, and resistance the 20-day at $3.45.
Soybean trade is 2 to 4 cents higher overnight at midday Tuesday with two-sided trade continuing with breaks supported, but buying drying up on challenges of resistance. Meal is $1.50 to $2.50 lower, with oil 0.60 cent to 0.70 cent higher.
South America is continuing to harvest with port disruptions the biggest concern, while the real remains very weak with some revision lower on production due to late dryness. Corn is gaining versus soybeans for new crop overnight, with soybeans remaining reluctant to defend acres.
The May soybean chart support is the gap at $8.41, with resistance the 20-day at $8.61, which we are just below at midday.
Wheat trade is 3 to 7 cents lower at midday with the short-term weather threat passed for now, with little other fresh news to push short-term buying.
There has been talk of new Middle East import tenders short term, with Russia still refining export and transport protocols, amid a dry start to the spring. KC is at a 78-cent discount to Chicago on the May with choppy trade continuing, while Minneapolis is -29 cents, with wider action to start the week.
The May KC chart support is the 20-day at $4.66, with resistance the $5.00 area.