The U.S. stock market indices are flat to lower with the Dow futures down 10. The interest rate products are higher. The dollar index is 30 points lower. Energies are mixed with crude down 14. Livestock is mostly higher. Precious metals are mixed with gold flat.
Corn trade is 1 to 3 cents lower overnight with light pressure during the day session. The weekly ethanol production report showed production off 4,000 barrels per day, remaining near the high, with a slight draw in stocks. Corn basis should be steady to firm ahead of the holiday if the futures are slipping. Brazilian exports of corn have picked up, but U.S. movement should remain strong in the near term. On the chart support is now the $3.41 3/4 December low after we broke below the $3.50 1/2 100-day moving average, resistance is at the $3.55 20-day then the $3.64 3/4 December high.
Soybean trade is 1 to 5 cents higher at midday with light buying as trade tries to hold over the $10.00 mark on the nearby contract. Meal is flat to $1 higher and oil is 5 to 15 points higher. South America looks to have ok rain coverage in the near term forecasts with some trouble spots persisting. Soybean basis should be steady to firmer this week with crushers continuing to soak up soybeans. New crop 2017 beans are back below $10 for the first time in awhile. The USDA announced 132,000 metric tons of soybeans sold to China. On the January chart, support is at $10.00 then the 100-day at $9.90 after we moved below the 200-day at $10.06 with new lows made for the month. Resistance is at the 200-day then the $10.28 10-day moving average.
Wheat trade is flat to 2 cents lower in quiet trade at midday with choppy action expected to continue. The dollar rally seems to be fading but remains near the upper end of the range. The protein spreads have firmed a little into midweek. Weather for the HRW belt looks fairly non-threatening in the near term. The southern hemisphere harvest should continue to move along with good yields adding to the world supply situation. On the Kansas City March chart support is the $3.99 low, with the 10-day at $4.12 above that.
David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at firstname.lastname@example.org Follow Fiala on Twitter @davidfiala