Beans, Corn Higher at Midday
Corn is 3 to 4 cents higher, soybeans are 8 to 10 cents higher, and wheat is 4 cents lower to 3 cents higher.
The U.S. stock market is mixed with the Dow flat. The dollar index is 30 points higher. Interest rate products are lower. Energies are firmer with crude up $0.90. Livestock trade is lower. Precious metals are weaker with gold down $26.70.
Corn trade is 3 to 4 cents higher with spread trade continuing to firm with December-March down to below 2 cents. The export wire was quiet again today but action indicates more sales will likely show up soon with weekly export sales strong 1.83 million metric tons. Ethanol margins remain under pressure with corn values as ethanol retains its premium to unleaded. Basis will likely remain solid with rains slowing harvest along with the upfront demand. On the December contract resistance is the fresh high at $4.19 with support the 20-day at $3.90.
Soybean trade is 7 to 10 cents higher after early weakness with spread trade and meal action continuing to carry trade forward with meal leading. Meal is $6.50 to $7.50 higher and oil is 50 to 60 points higher. The ral remains in the lower end of the range with planting progress in Brazil likely to pick up with plentiful rains short term, with Argentina still holding onto soybean supplies as an inflation hedge with another crush plant idled by mechanical issues via explosion. Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels.
Weekly export sales remain strong at 2.23 million metric tons, 321,900 of meal, and 37,000 of oil. The daily wire showed sales of 152,404 metric tons to Mexico, and 132,000 to unknown. The November chart has resistance at the fresh high at 10.85 1/4 with support the 20-day at 10.40.
Wheat trade is 5 cents lower to 1 cent higher with winter wheat trade weaker with better rains expected on the Plains short term, with little change to world forecasts yet. 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 although production estimates remain elevated. South Korea secured 130,000 metric tons of white wheat on the daily wire. Middle East buyers are becoming more active with tenders as well. Kansas City is at a 57-cent discount to Chicago with spreads backing off the recent highs, while Minneapolis is back to 40 cent discount with firmer action and a sharp reversal this week. Rains look to be concentrated to the eastern growing areas in the short term.
Weekly export sales were a bit softer at 367,500 metric tons. Kansas City December chart resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.30.