Corn trade is 1 to 2 cents higher, beans are narrowly mixed and wheat is narrowly mixed.
CORN:
Corn trade is 1 to 2 cents higher at midday Thursday with trade holding the upper end of the range heading toward the Christmas break. Ethanol margins should remain in the current range for the balance of the year. Basis has shown signs of softness short term with fall field nearly wrapped up and a quieter export wire in recent days.
Trade will start watching South American weather more as we get closer to the key weather time frames on new crop, as well as soybean progress for the timing of double-crop planting. Weekly export sales faded a touch at 982,900 metric tons (mt) and 132,500 mt of new.
On the March contract we have support at the 20-day moving average at $5.87, then the upper Bollinger Band at $6.05 then the fresh high at $6.08 3/4.
SOYBEANS:
Soybean trade is narrowly mixed at midday with softer spread action as trade pulls back slightly off the highs with light profit taking possible into the weekend, with weather and product strength likely to keep support in place. Meal is $2.50 to $3.50 higher and oil is 0.25 cent to 0.35 cent lower, supporting crush margins.
The daily wire has been quiet to start the week with weekly export sales disappointing at 811,500 mt of old crop and 1,000 mt of new’ 300,000 mt of old meal and -1,900 mt of old, and 109,500 mt of oil. South America will continue to see dry areas to the south, with the northern growing areas in better shape for now, and the recent weather patterns remaining mostly intact. Basis remains mostly flat short term.
On the January soybean chart, we are solidly above the upper Bollinger band at $13.24 with the fresh high at $13.34 Thursday morning as further resistance.
WHEAT:
Wheat trade is narrowly mixed at midday with KC retaking the lead Thursday morning with trade moving back to the upper end of the range, as supportive Northern Hemisphere weather and political factors still intact while Australian harvest continues. The dollar is just above 96 points in softer action, keeping trade off the upper end of the range.
Weather in the Plains looks to remain short of moisture near term with above-normal temps keeping stress in play as the crop fades towards dormancy. Spring wheat is firm versus Chicago moving the premium to 2.19 cents on the March, with KC at a 43-cent premium in softer action.
Weekly export sales held up pretty well at 425,300 mt of old crop and 33,000 mt of new. KC March chart support is at the 20-day at $8.24, which we moved back above Wednesday with the upper Bollinger Band at $8.70 as resistance.
MARKET SUMMARY:
The U.S. stock market is firmer with the Dow up 215 points. The U.S. Dollar Index is 0.10 firmer. Interest rate products are mixed. Energies are mixed with crude up $0.60. Livestock trade is mixed led by cattle. Precious metals are firmer with gold up $6.00.
