Corn is narrowly mixed, soybeans are 2 to 4 cents lower, and wheat is 2 cents lower to 4 cents higher.
The U.S. stock market is mixed with the Dow down 90. The dollar index is 20 points lower. Interest rate products are higher. Energies are firmer with crude up $0.70. Livestock trade is mostly higher. Precious metals are mixed with gold up $7.70.
Corn trade is narrowly mixed at midday with trade spiking to a new high by a penny and half overnight before fading with spread trade flat so far. The export wire is expected to remain active with the recent spread strength but no sales were announced today. Ethanol margins remain under pressure with corn values elevated as ethanol retains its premium to unleaded amid weakness in energies to start the week.
Basis will likely remain solid with snow slowing harvest. Weekly crop progress showing harvest at 72% vs. 56% on average. On the December contract, resistance is the fresh high at $4.21 3/4 with support the 20-day at $3.98.
Soybean trade is 3 to 4 cents lower at midday with trade scoring new highs before retreating with firm spread action so far. Meal is $4.00 to $5.00 lower and oil is flat to 10 points lower. Brazil should continue to make planting progress with the better rains short term for most, while Argentina continues to remain slow in moving soybeans to crushers as their currency remains at the low end of the range supporting the holding of stocks as a dollar hedge.
Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels. Weekly crop progress showed harvest at 83% vs. 73%. The November chart has resistance at the fresh high at 10.94 with support the 20-day at 10.53.
Wheat trade is 1 cent lower to 3 cents higher at midday with trade trying to bounce after the Monday selling with rains set to move across the Plains, while the early condition reports are mixed with HRW areas in tougher shape. The ruble action continues to favor Russia a bit in the export markets but their domestic prices are now elevated but with improved short term weather, along with too much rain in Australia as harvest starts. Middle East buyers are becoming more active with tenders as well. Kansas City is at a 67-cent discount to Chicago with spreads back to the recent highs before reversing, while Minneapolis is back to 56 cent discount with very active spread action.
Rains look to be more wide spread for U.S. growing areas over the next seven-10 days. Winter wheat was 85% planted vs. 80% on average, 62% emerged vs. 60% on average, with the crop at 41% good to excellent vs. 19% poor to very poor, which is 15% below this time last year with Kansas at 29% good to excellent. Kansas City December chart resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.42.