Corn is narrowly mixed, soybeans are 10 to 12 cents higher and wheat is 4 to 8 cents higher.
Corn trade is narrowly mixed at midday Friday with trade grinding around the lower end of the range. Ethanol margins should remain in the recent range with cheaper fall blends and weaker corn basis likely to shore up margins with stocks likely tighter coming out of the holiday weekend.
Brazil will continue to move along with the end of the second crop season with harvest wrapping up and next year’s planting underway for first crop, with little weather excitement so far. Corn basis will likely continue to drift lower as we get closer to widespread harvest and warm weather likely to push maturity with rains potentially slowing early action in the West.
On the December contract, we have support at the lower Bollinger band at $5.19 with the low at $5.18 1/2 below that, while resistance is the 20-day at $5.49.
Soybeans are 10 to 12 cents higher at midday with talk of fresh export bookings despite port issues with 130,000 metric tons announced to China Friday and short covering ahead of the long weekend, boosting action short term. Meal is narrowly mixed and oil is 0.35 cent to 0.55 cent higher. Late season rains continue to accumulate with enough heat to keep pushing the crop forward toward harvest with early harvest not far off now.
Basis levels have been flat to weaker in recent days. Trade will watch South American weather, but widespread planting is still a way off with U.S. exporters at an advantage into fall where they can ship. On the November soybean chart, resistance is at the 20-day at $13.23 with support at the fresh low at $12.70.
Wheat trade is 4 to 8 cents higher at midday with trade continuing to defend the recent range with better spillover from the row crops needed to push trade back to the upper end of the range. The dollar is holding in the middle of the recent range, but needs to cheaper to help kick start exports again with some progress so far this week.
The U.S. is creeping back toward competitive on the world market as well. KC is flat spread wise keeping a 10-cent discount to Chicago, with Minneapolis at a 185-cent premium on the December in slightly firmer action. KC December on the chart has resistance at the 20-day at $7.24 with the lower Bollinger Band at $6.96 as the next level of support.