Corn is 3 to 5 cents higher, soybeans are 11 to 13 cents higher and wheat is 8 to 11 cents higher.
The U.S. stock market is firmer with the Dow up 250 points. The U.S. Dollar Index is 0.15 higher. Interest rate products are weaker. Energies are firmer with crude up $1.60. Livestock trade is firmer. Precious metals are mixed with gold down $12.00.
Corn trade is 3 to 5 cents higher at midday Wednesday with mixed spread action as trade continues to test the upper end of the range and remains at contract highs for new crop. Ethanol production was down 253,000 barrels per day last week in the expected contraction, with stocks down 1.513 million barrels as production is recovering this week while the energy complex continues to firm. Trade will continue to look for further export-sale confirmations with the daily wire remaining quiet Wednesday, while shipping pace should recover further this week.
Basis should remain sideways short term. Double crop planting in Brazil is well underway as well but behind the usual pace. On the March contract support is the 20-day at $5.47 with the upper Bollinger Band at $5.63 as resistance.
Soybeans is 11 to 13 cents higher at midday with trade making new highs again before fading slightly, and November remains near contract highs. Meal is $1.50 to $2.50 higher and oil is 1.45 cents to 1.55 cents higher.
Basis will likely remain flat at strong levels with slower movement as the export program winds down and a bigger focus is on crush margins. Brazil should catch rains short term with harvest underway and behind the usual pace. Export shipments are picking up steam, with Argentina action trending warmer and drier over the next week. November soybeans scored new highs along with December corn as they try to make a late acre push. The March chart has resistance at the fresh high at $14.26 1/2, with support the 20-day at $13.77.
Wheat trade is 8 to 11 cents higher at midday with trade pushing to new highs on support from cold Russian weather and spillover from the row crops. The dollar looks to be settling into a 90-91 range on the index and trade remains in the lower end of the range despite the firmer action to start the week.
The Plains should see snow cover lift this week with sustained warmer weather likely to start growth into mid-March. KC is at 24-cent discount to Chicago; Minneapolis is at 31-cent discount with steady action so far. KC March chart support is the 20-day at $6.29, and resistance is the upper Bollinger Band at $6.49, which we are testing at midday.