Corn, Beans Higher at Midday; Wheat Trending Lower
Corn is 2 to 3 cents higher, soybeans are 7 to 8 cents higher, and wheat is flat to 6 cents lower.
The U.S. stock market is mixed with the Dow down 30. The dollar index is 30 lower. Interest rate products are mixed. Energies are mixed with crude down $0.10. Livestock trade is higher. Precious metals are mixed with gold down $2.50.
Corn trade is 2 to 3 cents higher at midday with flat to weaker spread action as early selling quickly turned to buying overnight before fading from the highs during the day session. Ethanol margins will remain poor with soft demand, and with limited relief in the cash market short term with the weekly report expected to show flat to lower production and flat to higher stocks today.
Basis has remained fairly sideways. The daily export wire saw 336,500 metric tons sold to unknown for old crop. On the March contract support was the gap area at $5.17 which we filled yesterday and bounced from with the 20-day at $4.93 below that, with the next level up the contract high at $5.41 1/2.
Soybeans are 5 to 7 cents higher at midday with trade struggling to hold the overnight highs as spread trade weakens despite fresh export sales of 136,000 metric tons to China, and 163,290 metric tons to Mexico. Meal is mixed and oil is 60 to 70 points higher.
Basis will likely remain flat with crush likely to take precedence over shipping in coming weeks with crush margins narrowing overall and new crop seeing more interest in recent export bookings. Brazil should catch rains short term with very early harvest underway, with Argentina action mixed. The March chart has support at the 20-day moving average of $13.43 with resistance likely to start at the $13.82 area which we are testing overnight.
Wheat trade is 2 to 6 cents lower at midday with trade following the lead of the row crops in coming off the lows and then fading, and the higher protein wheats leading. The dollar remains above 90 on the index but is seeing broad selling pressure early on. The Plains are expected to see limited moisture with cold scares remaining limited for now. Kansas City is at 26-cent discount to Chicago with the pattern of narrower overnight trade continuing, with Minneapolis at -29 as well. Kansas City March chart support is the 20-day at $6.09, and resistance is the fresh high at $6.60.