Grains Trending Higher at Midday
Corn is flat to 1 cent higher, soybeans are 10 to 12 cents higher, and wheat is 5 to 13 cents higher.
The U.S. stock market weaker with the Dow down 55 points. The dollar index is 15 points lower. Interest rate products are lower. Energies are firmer with crude up $0.40. Livestock trade is mixed with cattle leading. Precious metals are firmer with gold up $12.
Corn trade is flat to 1 cent higher at midday with trade following soybeans higher again with fresh highs being scored again overnight with spreads softer at midday, and 210,000 metric tons of corn sold to China. Ethanol margins continue to see pressure with the firm corn trade with unleaded bouncing slightly. Basis has remained fairly flat with steady action expected to start the week.
On the December contract, trade has support at the $3.60 20-day moving average, with the recent high at $3.79 as resistance.
Soybean trade is 10 to 12 cents higher at midday with trade scoring new highs with more export sales showing up of 132,000 of beans to China, and 100,000 of meal to unknown. Meal is $4.50 to $5.50 higher and oil is 10 to 20 points higher. The ral remains in the lower end of the range ahead of South American planting with farmers waiting for seasonal rains while Argentine farmer selling remains slow.
Export offers continue to get tighter in availability as well. The November chart has resistance at the upper Bollinger band at $10.44 which is also where the overnight high was with support the 20-day at $9.67.
Wheat trade is 5 to 13 cents higher at midday with the row crops pulling wheat along while European dryness will remain supportive short term. The dollar remains steady vs. the ruble with little change in world export competitiveness. Kansas City is at a 66-cent discount to Chicago with spreads near the recent lows, while Minneapolis is back to a 16 cent discount with wider action to start. Wheat drilling progress should expand across the plains short term with OK moisture for most.
Weekly export sales were softer at 335,700 metric tons. Kansas City December chart resistance is the upper Bollinger Band at $4.93 with $5.00 the next round up which we are testing at midday, and support is the 20-day at $4.72.