After trading at or near new highs on Wednesday, corn, soybeans and wheat all finished lower on the week, hit by profit-taking ahead of the three-day weekend. Early bearish influence came to soybeans Friday when palm oil prices fell to their lowest close in twelve weeks.
Soybeans led trade lower at midday, only Minneapolis wheat was higher.
Corn trade is 2 to 4 cents lower at midday with trade continuing slide after the poor finish Thursday. Weakness could continue going into the long weekend for Presidents Day with profit taking from the recent rally. Ethanol margins remain under pressure this morning. The USDA announced 194,112 metric tons of corn sold to Japan split between old and new crop.
Support is at the $3.71 10-day which we are testing this morning then the $3.68 20-day. Resistance is the $3.80 high this week, and then the $3.87 multi-month high.
Soybean trade is 7 to 12 cents lower with trade following through lower after the poor close Thursday. Meal is $3 to $4 lower and oil is 50 to 60 points lower. The firmer Real continues to limit Brazilian export competitiveness which has been supportive for near term US demand but harvest will provide bushels for the market to deal with as the export pipeline fills.
On the March soybean chart we broke below nearby support levels yesterday with the 20-day at $10.45 becoming resistance, and the 50-day at $10.35 now support which is trying to hold at midday, with the 200-day at $10.18 below that.
Wheat trade is following the row crops lower this morning with trade 1 to 5 lower on the winter wheat, but flat to 2 firmer on the Minneapolis as the protein spreads build this morning.
The warm stretch will continue to raise concerns about breaking dormancy early, with the more extended forecast showing potentially for a cold snap into early March for the western belt. Better moisture is expected for Kansas in the next week.
On the March Kansas City contract support is at the $4.54 10-day then the $4.51 200-day. Resistance is at the seven-month high at $4.74.