March Chicago wheat closed down 6 1/2 cents Friday with little happening to keep its 2017 rally going. Corn and soybeans were a little lower on another day that saw light trading volume.
Trade is lower across the board at midday in quiet action.
CORN
Corn trade is 2 to 3 cents lower at midday with generally soft trade during the day in a quiet session due to outside market pressure. Ethanol margins remain under pressure and production should begin to slack until spring driving season gets here to boost gas demand. South American weather is still noted as concerning which may give us light support this afternoon adding weather premium in front of the South American summer weekend.
Corn basis has firmed in parts of the western belt in recent days with the board drop. The February USDA monthly report is due out in two weeks from today; until then news is limited so South American weather and forecasts should give us direction.
On the March corn chart support is at the 20-day moving average at $3.61, resistance is at the 200-day at $3.69 3/4.
SOYBEANS
Soybean trade is 2 to 5 cents lower at midday with trade starting to establish a $10.40 to $10.60 type range. Meal is fractionally lower and soybean oil is 40 to 50 points lower. The Argentina forecast has went a bit drier overnight lowering the probability of the needed follow up rains for the dry areas. Wet weather is expected to slow early harvest in Brazil, and could cause some additional quality issues. Soybean basis has generally been soft this week.
On the March soybean chart support is at the $10.35 20-day, then the $10.14 200-day. Resistance is now at the 10-day moving average at $10.59, then the $10.80 high.
WHEAT
Wheat trade is 3 to 7 cents lower at midday with trade fading further from the highs on a lack of fresh bullish news. The dollar has firmed back towards the 101 mark on the index but is struggling to hold gains at midday. Black Sea sellers have been active the last couple of days to keep wheat moving out of their ports.
We are now testing some chart support but have held up well so far, with trade edging just below the 20-day at $4.36, and further support at the 50-day at $4.36.
