May soybeans slid to a new five-month low on moderate volume, as the market had trouble finding buyers to take the other side on Friday. Corn ended slightly lower and May Chicago wheat was a few cents higher, but all major grain contracts finished lower on the week.
Midday: Beans were seeing double-digit midday losses and at five-month lows.
CORN
Corn trade is fractionally lower at midday, the daily range has only been 2 cents illustrating corn has some support here even though the chart looks negative. The weekly export sales were strong on the report yesterday at 1.35 million metric tons of old crop and 127,100 of new crop. Demand is good with basis improving this week.
Lower prices are expected to lower planted acreage as well. Spillover pressure from beans remains the market bears argument which does hold validity, so there could still be some long liquidation if corn stays near our 3-month lows.
On the May chart support is at the $3.52 late December low. Resistance is the 10-day at $3.61.
SOYBEANS
Soybean trade is 13 cents lower and near the daily lows at midday; meal is down $3 a ton and soybean oil is down 68 points. Outside markets are fairly neutral at midday. Ideas of big soybean acreage, a rising South American crop size and chart pressure are challenges for the bull argument here. Long liquidation is a concern this afternoon.
On the May soybean chart nearby support is hard to identify. The lower Bollinger Band is at $9.75, the 1 year low is at $9.37 1/4. Resistance is at the 10-day and lowest major moving average at $9.97.
WHEAT
Wheat trade is mixed at midday with Chicago 2 cents higher, Kansas City steady and Minneapolis down 2 cents. The recent warmer weather has stressed the crop on the plains but concerns are limited at the moment with the moisture today. The dollar remains below the 100 mark but we need more sales to help out the bull argument. Most expect wheat trade to remain mixed this afternoon, but spillover pressure from beans is pulling on wheat at midday.
On the May Kansas City contract support is the recent low at $4.26 1/2, with resistance at the 100-day at $4.45.
