Corn futures are 7 to 8 cents higher at midday Wednesday; bean futures are 28 to 30 cents higher; wheat futures are 6 to 17 cents higher.
Corn futures are 7 to 8 cents higher at midday Wednesday; a fresh high was scored for the move before backing off slightly. Ethanol margins will continue to find support near-term on production with the weekly report showing production up 21,000 barrels per day (bpd) and stocks down 205,000 barrels, supporting margins further.
Basis should remain steady to firmer short-term as harvest pressure eases as more producers wrap up with more of a focus shifting to fall fieldwork as producers try for a good fall NH3 run with good progress being made this week.
On the December contract, we have resistance at the recent high of $5.84, with the upper Bollinger band at $5.89, and the 20-day moving average as support at $5.60, which we are solidly above.
Soybean futures are 28 to 30 cents higher at midday with fresh fall highs scored as product values surge again. China bought 132,000 metric tons (mt) of U.S. soybeans according to USDA’s daily announcement. India purchased 30,000 mt of oil. Meal is $7.50 to $8.50 higher and oil is 80 to 90 points higher. South America looks to continue short-term progress with issues remaining limited for now, while the extended forecast looks drier for Argentina.
Crush margins are very strong for the moment with action in China picking up as power production recovers from the early fall issues. On the January soybean chart, support is the 20-day moving average at $12.36, which we have consolidated above with the $12.89 fresh high as the next round up from there with further support at the lower Bollinger band at $11.99.
Wheat futures are 6 to 17 cents higher at midday with trade looking to consolidate further for the winter wheat while spring wheat pushes back from the test of $10.00 Tuesday. Russia is quieter on export news and Australian harvest is about to pick up. The dollar is just below 96, scoring fresh highs again Tuesday. Plains weather looks little changed short-term.
Spring wheat is weaker vs. Chicago, holding the premium at $1.95, with KC at a 6-cent premium in flat action. KC December chart support is at the 20-day moving average at $7.96 with resistance at the upper Bollinger band at $8.42 with the fresh high at $8.43 1/2.
Corn futures are 7 to 8 cents higher at midday Wednesday; bean futures are 28 to 30 cents higher; wheat futures are 6 to 17 cents higher. The U.S. stock market is weaker with the Dow down 195 points. The U.S. Dollar Index is 2 points higher. Interest rate products are mixed. Energies are weaker with crude down 1.50. Livestock trade is mixed. Precious metals are mixed with gold up 14.00.