Corn is 11 to 12 cents lower, soybeans are 16 to 18 cents lower, and wheat is 4 cents to 7 cents lower.
The U.S. stock market is sharply lower with the Dow down 870. The dollar index is 55 points higher. Interest rate products are higher. Energies are weaker with crude down $2.30. Livestock trade is mixed. Precious metals are lower with gold down $38.00.
Corn trade is 11 to 12 cents lower at midday with trade seeing broad weakness on all ag fronts this a.m. after momentum slowed early in the week with spillover from outside markets. The export wire is expected to remain active with the recent spread strength with option origin sales of 207,000 metric tons to South Korea. The weekly ethanol report showed production 29,000 barrels a day higher, with stocks 120,000 barrels a day lower.
Basis will likely remain solid with snow slowing harvest. On the December contract resistance is the fresh high at $4.21 3/4 with support the 20-day at $3.99.
Soybean trade is 16 to 19 cents lower at midday with spreads widening and notable product weakness as well. Meal is $6.00 to $7.00 lower and oil is 50 to 60 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 especially with the dollar strength this a.m.
Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels. On the daily wire 110,000 metric tons were reported to Egypt, and 120,000 to unknown. The November chart has resistance at the fresh high at 10.94 with support the 20-day at 10.55.
Wheat trade is 4 to 8 cents lower with trade following the row crops lower overnight with trade firming off the lows so far today, with Kansas City leading action. Rains are expected to remain a bit more active in the southern plains. 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 64-cent discount to Chicago with spreads back to the recent highs again before reversing, while Minneapolis is back to 55 cent discount with very active spread action. Kansas City December chart resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.42 which we are just above at midday, then the lower Bollinger Band at $5.05.