Corn trade is 5 to 6 cents higher, beans are 8 to 10 cents higher and wheat is 5 cents lower to 3 cent higher.
CORN:
Corn trade is 5 to 6 cents higher at midday Wednesday with firmer spread action as trade tries to find footing after the early week selling and better broad commodity action Wednesday morning. Ethanol margins have narrowed with the energy move lower with the weekly report showing production down 44,000 barrels per day, with stocks 137,000 barrels higher.
Basis should remain steady to firmer short term with fall field work likely to make good progress where supplies are available. USDA announced 150,000 metric tons sold to Colombia. On the March contract we have resistance at the 20-day moving average at $5.77, which we fell through Tuesday, then the lower Bollinger Band at $5.59 as support.
SOYBEANS:
Soybean trade is 8 to 10 cents higher at midday with firmer spread action as trade works to bounce back from the lower end of the range with better product action and eyes toward further exports. Meal is $5.00 to $6.00 higher and oil is flat to 0.10 cent higher. South America looks to continue short-term progress with issues remaining limited for now while the extended forecast remaining mixed for crop development short term.
Crush margins remain solid but further product weakness would limit enthusiasm. The export wire was quiet to Wednesday with trade looking for more sales as South American competitiveness improves. On the January soybean chart, we fell below the 20-day at $12.41 Monday and remain below it at midday, with further support the lower Bollinger Band at $11.91.
WHEAT:
Wheat trade is 5 cents lower to 3 cents higher at midday with KC the laggard so far as we look to consolidate after the recent losses carried action back to support levels with fresh bullish news more limited this week. The dollar is just above 96 points continuing to hold the upper end of the range. Weather in the Plains looks little changed short term with longer-term dry concerns for the Southern Plains heading toward dormancy.
Spring wheat is softer versus Chicago moving the premium to 2.20 cents on the March, with KC at a 27-cent premium in weaker action so far. KC March chart resistance is at the 20-day at $8.29, which we faded through Tuesday with the recent low at $8.15 as the first level of support.
MARKET SUMMARY:
The U.S. stock market is firmer with the Dow up 470 points. The U.S. Dollar Index is 0.10 higher. Interest rate products are weaker. Energies are mixed with crude up $2.20. Livestock trade is mixed. Precious metals are mixed with gold up $10.00.
