Soybeans are slightly positive at midday with corn and wheat weaker.
Corn trade is 3 cents lower at midday with trade continuing to work in the range established a week ago with some spillover pressure from wheat noted today. The weekly ethanol report showed production 1.73% higher and stocks steady, with ethanol futures down slightly at midday. Corn basis has remained steady to seasonally weak with the late moving old crop bushels still occupying elevator space.
Mexico has been active for US corn this week, with the U.S. competitive on the world market but the daily wire was quiet, and weekly sales delayed until tomorrow with Labor Day on Monday. Maturity will remain slow in the east, with more harvest progress in the southern areas of the belt.
On the December chart support is the 10-day at $3.54, with the lows at $3.44 below that, and the 20-day at $3.61 as resistance. We have three more sessions until we see the USDA September World Agricultural Supply and Demand numbers; this report should be the trade focus between now and next Tuesday-report day.
Soybean trade is 2 cents higher at midday with two-sided trade; spillover pressure from corn and wheat is noted with soybean support coming from demand and rising world veg oil prices. Meal is narrowly mixed and oil is flat to 10 points lower.
The frost was a non-event so far, with maturity advancing quicker with the dry conditions in much of the belt. Palm oil prices have hit new highs again, potentially adding more support. Delta harvest should continue to move along quicker.
On the November chart support is the 100-day moving average at $9.60 then the small gap at $9.52 with the 10-day at $9.51 below that, then the 20 day at $9.43. Expect bigger sell stops below the 20-day if we get there. Otherwise the market feels like it is still benefiting from some chart buying due to the past two daily closes above the 100-day.
Resistance is at the 200-day and highest major moving average at $9.82. Also expect buy stops above this level that would effectively be short covering along with some longer term chart buyers.
Wheat trade has the recent roles reversing with winter wheat 7 to 10 cents lower with spring wheat mixed. Kansas City got its sixth positive finish in a row yesterday, but buying enthusiasm has faded today without much fresh bullish inputs besides planting rally potential and short covering.
Minneapolis trade is trying to ease oversold conditions with harvest wrapping up, with another positive finish today would likely encourage greater short covering. The dollar downtrend remains intact with new lows this morning, but Russian still is controlling the export market in the near term.
On the December Kansas City contract support is the 20-day at 4.42 which we were are just below at midday, with the 200-day still well above the market at $4.89.
The U.S. stock market indices are mixed with the Dow futures down 35 points. The interest rate products are higher. The dollar index is 75 lower. Energies are mixed with crude down 0.15. Livestock trade is sharply higher for cattle, and lower for hogs. Precious metals are mixed with gold up $13.00.