Corn trade is 3 to 4 cents higher, beans are 4 to 5 cents lower and wheat is 2 to 7 cents lower.
Corn trade is 3 to 4 cents higher at midday Friday with firmer spread trade as we continue to hold nearby support levels with the recent sideways action. Ethanol margins will continue to be squeezed by tepid short-term demand with production expected to slide further as demand looks to remain soft into next week.
Basis should remain rangebound to slightly weaker short term with weather likely to slow short-term movement. Trade will continue watching South American weather more as we get closer to the key weather time frames on new crop as well as soybean progress for the timing of double-crop planting. The daily export wire showed 100,422 metric tons sold to Mexico. On the March contract, we have resistance at the 20-day moving average at $5.99 then the lower Bollinger Band at $5.85 as further support.
Soybean trade is 4 to 5 cents lower with light two-sided trade so far, after testing the early week lows at the start of the overnight session with position squaring likely into the long weekend as trade looks to see if the awaited rains hit the dry areas in South America. Meal is $1.00 to $2.00 lower and oil is 0.05 cent to 0.15 cent lower. Basis remains mostly flat short term with the export wire quiet Friday.
Crush margins remain solid with future renewable diesel demand likely to keep good support under oil going forward. The daily wire showed 100,000 metric tons of meal sold to Spain for new crop. On the March soybean chart, we have resistance at the fresh high at $14.15 which we scored a week ago, and the 20-day well below the market at $13.61 as support.
Wheat trade is 2 to 7 cents lower with Chicago trade trying to turn the corner at midday, along with Minneapolis trying to stabilize the recent washout after dropping from $10.00 to sub $9.00 in 8 sessions. The dollar continues to work sideways at the lower end of the range. Weather in the Plains looks drier with a little snow cover out of the last system while temps continue to fluctuate keeping stress intact and other Northern Hemisphere weather concerns fading for the moment while political fears ramp up again.
Spring wheat is weaker versus Chicago moving the premium to 1.46 cents on the March, with KC at an 8-cent premium in weaker action as well. KC March chart support is the lower Bollinger Band at $7.42 with the 20-day at $8.04, still well above the market.
The U.S. stock market is weaker with the Dow off 310 points. The U.S. Dollar Index is 0.25 higher. Interest rate products are mostly lower. Energies are firmer with crude up 1.15. Livestock trade is sharply higher. Precious metals are weaker with gold off $4.00.