Beans, Corn Lower at Midday; Wheat Mixed
Corn is 1 to 2 cents lower, soybeans are 6 to 8 cents lower, and wheat is 1 cent lower to 5 cents higher.
The U.S. stock market is weaker with the Dow down 130. The dollar index is 48 points higher. Interest rate products are firmer. Energies are weaker with crude down $1.50. Livestock trade is mostly higher. Precious metals are weaker with gold off $27.50.
Corn trade is 1 to 2 cents lower with early gains fading to weaker action during the day session with flat to weaker spread action and little fresh news outside 110,000 metric tons booked to Mexico. Ethanol margins will remain poor with soft demand, and no relief from corn values.
Basis is likely to weaken further in the short term as fresh cash demand remains weak. On the March contract support is the 20-day at $4.80, with the next level up the upper Bollinger Band at $5.42, and the contract high at $5.41 1/2 just below that.
Soybeans are 6 to 8 cents lower at midday with trade seeing pushes in both directionS and new crop gaining vs. the front months but losing a bit vs. corn on the new crop months, with confirmation of 368,000 metric tons of soybeans booked for new crop. Meal is flat to $1.00 lower and oil is 100 to 110 points lower.
Basis has started to show pockets of weakness with crush likely to take precedence over shipping in coming weeks with crush margins narrowing overall although we have seen fresh bookings in recent days. Brazil should catch rains short term, with the better action sticking around in Argentina for now with labor unrest remaining an issue. The March chart has resistance at the fresh high at $14.38 then the upper Bollinger Band at $14.58, with support the 20-day at 13.21.
Wheat trade is 1 cents lower to 5 cents higher at midday with trade spiking on confirmation of Russian export tax hikes near term, with the possibility of extending taxes post harvest before fading during the day session. The dollar remains above 90 on the index with solid buying this morning. The Plains are expected to see limited moisture with cold scares remaining limited for now. Kansas City is at 29-cent discount to Chicago after hitting the tightest level in weeks and then reversing, with Minneapolis at -29 tightening back up from early weakness. Kansas City March chart support is the 20-day at $5.98, and resistance is the fresh high at $6.60.