Corn, Beans Higher at Midday; Wheat Mixed
Corn is 1 to 2 cents higher, soybeans are 3 to 4 cents higher, and wheat is 2 cents lower to 3 cents higher.
The U.S. stock market is weaker with the Dow down 60 points. The dollar index is 38 points lower. Interest rate products are lower. Energies are mixed with crude up $0.20. Livestock trade is sharply lower except front-month hogs. Precious metals are firmer with gold up $2.
Corn trade is 1 to 2 cents higher at midday with spread trade easing and two-sided action coming into play during the day session. The USDA announced 345,000 metric tons sold to unknown, and 123,000 metric tons to Mexico. Ethanol margins remain range bound with unleaded remaining at a discount to ethanol with corn values continuing to limit upside. Basis will likely remain solid with rains slowing harvest along with the upfront demand.
Weekly export inspections remained solid at 911,012 metric tons, with weekly crop progress showing harvest near 40% and solidly ahead of average. On the December contract resistance is the fresh high at $4.08 with support the 20-day at $3.83.
Soybean trade is 3 to 4 cents higher with trade finding light buying to start the week, with spread trade flat to softer so far, with trade looking for more export business with nothing announced today and rains in South America as planting remains behind schedule. Meal is $6.50 to $7.50 higher and oil is 40 to 50 points lower. The ral remains in the lower end of the range with planting progress in Brazil likely to pick up, with Argentina still holding onto soybean supplies as an inflation hedge. Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels.
Weekly export inspections remained very strong at 2.173 million metric tons, with harvest progress nearing 80% complete. The November chart has resistance at the fresh high at 10.79 3/4 with support the 20-day at 10.31.
Wheat trade is 2 cents lower to 3 cents higher with from month Minneapolis trade leading after early Chicago strength as world weather concerns continue to drive the wheat complex higher. The ruble action continues to favor Russia a bit in the export markets but their domestic prices are now elevated with growing winter-kill concerns, along with too much rain in Australia. Kansas City is at a 64-cent discount to Chicago with spreads backing off the recent highs, while Minneapolis is back to 61 cent discount with firmer action and fresh highs scored. Rains look to be concentrated to the eastern growing areas in the short term.
Weekly export inspections were disappointing at 239,688 metric tons, with planting ahead of normal, and emergence lagging with the dry weather for the plains. Kansas City December chart resistance is the fresh high at $5.68 1/2, and support is the 20-day at $5.18.