Corn is 8 to 10 cents higher, soybeans are 33 to 35 cents higher, and wheat is 7 to 10 cents higher.
The U.S. stock market is weaker with the Dow down 290. The dollar index is 26 higher. Interest rate products are firmer. Energies are mixed with crude down $0.30. Livestock trade is mostly lower. Precious metals are weaker with gold down $7.50.
Corn trade is 8 to 10 cents higher at midday with overnight losses giving way to broad strength during the day session with support from the soybean bounce. Ethanol margins will remain poor with soft demand, but the pull back in cash values will offer some relief short term.
Basis has remained fairly sideways with movement to be limited by the winter storm to start the week. Weekly export inspections were strong at 1.391 million metric tons. On the March contract support is the 20-day at $4.98 that we are tested overnight, with the next level up the old gap area at $5.17.
Soybeans are 33 to 35 cents higher at midday with trade bouncing off a test of the $13.00 level overnight with spread action firming slightly. Meal is $10.50 to $11.50 higher and oil is 110 to 120 points higher.
Basis will likely remain flat with slower movement and a bigger focus on crush margins. Brazil should catch rains short term with very early harvest underway, with Argentina action mixed with temps cooling off for both. Weekly export inspections remain strong at 1.979 million metric tons. The March chart has support at the fresh low of $12.98 with resistance the 20-day at $13.48.
Wheat trade is 7 to 10 cents higher at midday with trade following the row crops higher after early weakness. The dollar remains above 90 on the index, and squarely in the middle of the recent range. The plains should see some benefit from the winter storm sweeping through on snow cover and moisture. Russian farmers are petitioning against export taxes as well. KC is at 22-cent discount to Chicago with the pattern of narrower overnight trade continuing, with Minneapolis at -23. Weekly export inspections improved at 523,091 metric tons. KC March chart support is the 20-day at $6.11, and resistance is the upper Bollinger Band at $6.51.