Corn futures are 8 to 9 cents higher at midday Wednesday; soybean futures are 21 to 23 cents higher; wheat futures are 20 to 25 cents higher.
Corn futures are 8 to 9 cents higher at midday with trade trying to consolidate back over $6.00 nearby with spillover support from wheat and soybeans and firmer spread trade. Ethanol margins will continue to be squeezed by tepid short-term demand with production expected to slide further as demand looks to remain soft in the short term with the weekly report delayed until Friday.
Basis should remain rangebound to slightly weaker in the short term with weather likely to slow short-term movement. Trade will continue watching South American weather as we head towards second-crop planting and development. The daily export wire has been quiet this week. On the March contract, we have support at the 20-day moving average at $6.01; the upper Bollinger band at $6.13 is further resistance.
Soybean futures are 21 to 23 cents higher at midday with trade snapping back to the middle of the recent range after rebounding from early selling Tuesday as trade continues to weigh rains and forecasts for the dry areas of South America along with broad spillover commodity support. Meal is $7.50 to $8.50 higher and oil is 130 to 140 points higher. Basis remains mostly flat in the short term.
Crush margins remain solid with future renewable diesel demand likely to keep good support under oil going forward. The daily export wire was quiet Wednesday. Early harvest in under way in South America, likely to further crimp U.S. export competitiveness in February. On the March soybean chart, we have resistance at the fresh high of $14.15, with trade back above the 20-day moving average at $13.68 overnight with the lower Bollinger Band well below the current action at $13.20.
Wheat trade is 20 to 25 cents higher at midday with oversold conditions and political worries helping push trade back off the lower end of the range with action heading back towards the $8.00 area nearby. The dollar is giving back a bit of the rebound from Tuesday. Plains weather looks drier with a little snow cover out of the last system, while temps continue to fluctuate, keeping stress intact with other Northern Hemisphere weather concerns fading for the moment while political fears ramp up again.
Spring wheat is firmer vs. Chicago, moving the premium to $1.42 on the March, with KC at a 5-cent premium in lightly firmer action as well. KC March chart support is the lower Bollinger band at $7.36 with the 20-day moving average at $8.00, just above the market.
The U.S. stock market is weaker with the Dow off 40 points. The U.S. Dollar Index is 20 points lower. Interest rate products are firmer. Energies are mostly higher with crude up 1.75. Livestock trade is higher. Precious metals are firmer with gold up 28.00.