Corn futures are 2 to 3 cents lower at midday; soybean futures are 3 to 4 cents higher; wheat futures are 13 to 18 cents lower.
Corn futures are 2 to 3 cents lower at midday with trade fading slightly from fresh highs scored overnight as traders back off overbought conditions. Ethanol margins should remain in the current range for the balance of the year with driving demand likely to soften into the start of the new year.
Basis has shown signs of softness short-term as fall fieldwork is nearly wrapped up and just 269,042 metric tons (mt) of corn sold on the daily 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.
The March contract has support at the 20-day moving average of $5.90, then the upper Bollinger band at $6.14 as resistance is the fresh high at $6.17 3/4.
Soybean futures are 3 to 4 cents higher at midday with trade backing off fresh highs scored again overnight. Product action remains strong and South American weather is more concerning as trade gets more overbought. Meal is $4.00 to $5.00 higher and oil is flat to 10 points higher, supporting crush margins.
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 $13.58 with the fresh high at $13.75 3/4 Tuesday morning as further resistance.
Wheat trade is 13 to 18 cents lower at midday, extending the reversal from Monday as political tensions ease with Russia/Ukraine along with little fresh weather news. The dollar is just above 96 in flat action, keeping trade off the upper end of the range. Plains weather looks to remain short of moisture near-term with more normal temps moving in.
Spring wheat is soft vs. Chicago, moving the premium to $2.20 on the March, with KC at a 39-cent premium in softer action. Weekly export inspections were softer at 272,349 mt. KC March chart support is at the 20-day moving average of $8.22 with the upper Bollinger band at $8.60 as resistance.
The U.S. stock market is mixed with the Dow up 150 points. The U.S. Dollar Index is 5 points firmer. Interest rate products are firmer. Energies are mixed with crude up .50. Livestock trade is mixed, led by cattle. Precious metals are mixed with gold up 2.00.