Corn is 6 to 8 cents higher, soybeans are 14 to 16 cents higher and wheat is 10 to 14 cents higher.
The U.S. stock market is weaker with the Dow down 110 points. The U.S. Dollar Index is 0.15 weaker. Interest rate products are lightly firmer. Energies are flat with crude up $0.05. Livestock trade is weaker. Precious metals are mixed with gold up $3.50.
Corn trade is 6 to 8 cents higher at midday with firmer spread action as trade pushes off the overnight test of support and traders looking for short-term demand improvement. Ethanol production should continue to rebound with trade looking for better margins into the second quarter as spring driving season commences with rising Brazil ethanol values likely to support U.S. exports. Trade will continue to look for further export-sale confirmations with 175,000 metric tons of corn sold to Japan for new crop.
Basis should remain sideways short term as warmer weather will help improve movement. Double crop planting in Brazil is well underway as well but behind the usual pace. On the May contract resistance is the 20-day at $5.47, which we are just below at midday, with the lower Bollinger Band at $5.32 as support that we bounced off overnight.
Soybeans is 14 to 16 cents higher at midday with firmer spread action turning into fresh buying during the day session. Brazil’s harvest progress and Argentina weather is still in focus. Meal is $2.00 to $3.00 higher and oil is 0.30 cent to 0.40 cent 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, with oil and meal both advancing Tuesday. Brazil should remain rainy in the short term for most with shipments building upstream. Argentina is seeing broadly drier trend. The May chart has resistance at the upper Bollinger Band at $14.21, with support the 20-day at $13.83.
Wheat trade is 10 to 14 cents higher at midday with trade working to bounce back from the broad Friday and Monday selling. Weather concerns are still at the forefront in the Northern Hemisphere. The dollar is just below 91 points on the index, getting back to the upper end of the range ,with further consolidation at the upper end of the range needed to weigh on trade, but we have struggled to sustain these levels. The Plains should see warmer weather, bringing the crop closer to exiting dormancy soon with some dry pockets persisting, but spotty light rains possible across the Plains. KC is at 30-cent discount to Chicago; Minneapolis is at a 21-cent discount with mixed action so far. KC May chart support is the lower Bollinger Band at $6.10, with resistance the 20-day at $6.35b which have edged back above at midday.