Trade is lower at midday with wheat the downside leader.
CORN
Corn trade is 1 to 3 cents lower overnight with trade remaining rangebound in quiet action so far. Early fieldwork and planting looks to expand for the southern part of the belt with higher temperatures, while the north remains slow into the second half of the month with another winter storm moving through this weekend, and another follow up system expected.
Ethanol margins remain positive with usage likely to climb further into spring, with ethanol futures getting back towards $1.50.
On the May chart we are back above the 20-day at $3.82 5/8 which is support with resistance the recent highs of $3.92 1/2 then the $3.95 1/4 eight-month high.
SOYBEANS
Soybean trade is 2 to 5 cents lower at midday with trade turning lower on signs of softer nearby demand after testing the upper end of the range. Meal is 1.50 to 2.50 higher and oil is flat to 10 points higher.
The recent pattern in South America should remain intact near term allowing for greater progress in Brazil harvesting, with values remaining elevated for Brazilian producers to encourage harvest selling. Trade will be looking for signs of additional acres, especially with a slow start to planting in the Dakotas on spring wheat and the slow start to corn.
On the May contract, trade is back above the 20-day at $10.33 with resistance the post report high at $10.68, which we tested overnight.
WHEAT
Wheat trade is 6 to 14 cents lower at midday with winter wheat pulling back again during the day session, with world stocks overcoming the weather issues so far this morning along with better moisture in the forecast for Kansas next week.
The slow progress likely limits damage from the cold snap due to slow jointing with near-term warmth adding stress, before the next round of cold this weekend. Spring wheat seeding is behind in Russia for the moment, but should see better catching up coming forward, with the slide in the ruble helping their export advantage.
On the May Kansas City contract support is at the 50-day at $4.97 with trade with the upper Bollinger band at 5.27 the next level of resistance.
General Comments
The U.S. stock market indices are weaker with the Dow futures up 65 points. The interest rate products are mixed. The dollar index is 7 points higher. Energies are firmer with crude down $0.30. Livestock trade is mixed. Precious metals are firmer with gold up 6.00.
