AFB Grain-Soybean Close: Corn, Wheat Slightly Lower, Soybeans Mixed
Soybeans were mixed today. The improving South American crop outlook is limiting the upside, but continued strong demand is a positive and led to higher deferred contracts. After failing at resistance at $13.25, January has moved below the key $13 level, which will be resistance on a rebound. Support begins between $12.55 and $12.47.
Wheat prices continued to weaken today. Lack luster demand combine with little movement in outside markets leaves little for wheat to find support in. July wheat continued to inch closer to contract lows at $6.50. The market will likely hold close to this low as July wheat is becoming oversold. If prices can respond to this and get a bounce prices will likely move back towards resistance at $6.62 followed by $6.70.
Yesterday’s gains in the corn market were short lived as the market continued back lower again today. Monday’s contact low at $4.11 now becomes support. While sales of U.S. corn exports have been very high, actual shipments remain below the 5-year average pace. The market is looking for this pace to pick up before it can believe the USDA export forecast for corn. The market continues to worry about what the EPA RFS reduction will do to demand for corn, so far demand for corn used for ethanol has been robust. Cheap corn prices and strong gas prices continue to encourage the use of ethanol. Without some fresh fundamental watch for corn to move lower again and test contact lows. We will likely have to wait a few more weeks for harvest lows to be put in this market
|Cash Bids||Stuttgart: 1281||Pendleton: 1291|
|New Crop||Stuttgart: 1133||Pendleton: 1145|