AFB Grain-Soybean Close: Wheat Continues Climb, Corn, Beans Drop Further
Soybean prices closed lower again today as the November contract closed down almost a dollar from last Fridays close after Monday’s USDA report forecast record soybean acreage in the US. While declines of recent weeks have pushed prices into over sold territory, weak fundamentals will likely limit any potential gains in this market and likely push prices to test February lows of $10.88. Much like with corn, large supplies could push stocks sharply higher and lead to soybean prices at or below $10 not only for this year but also for 2015.
Wheat prices continued to strengthen today thanks to technical signals, which pushed wheat back over $6. While wheat prices have little fundamental support to move higher as large supplies and weak demand continue to plague this market this market is oversold and due some gains. Look for this market to try and test resistance at $6.12.
Corn prices continued to decline today as the market down some 32-cents following Monday’s bearish USDA report. The prospect for higher prices remains bleak, as record production is forecast for 2014. While there has been some flooding in the Midwest it is no expected to have a major impact on the crop. With large supplies will come large stocks, which will continue to push prices sharply lower, not only 2014, but also into 2015.
|Cash Bids||Stuttgart: 1137||Pendleton: 1144|
|New Crop||Stuttgart: – – –||Pendleton: – – –|