Old Crop (futures month, change, settle price)
New Crop (futures month, change, settle price)
Soybeans made double digit losses Wednesday on commercial selling along with pressure from U.S. trade relations. Reports are that a revised NAFTA agreement is unlikely before year’s end, and comments by President Trump this morning certainly didn’t spell negotiation or compromise between the U.S. and the Chinese. July beans made a bearish close at a new six week low. Next support is the low set on May 4th, which is the same date Chinese tariffs on U.S. soybeans were announced. Resistance is the 200 day at 1016.
Corn was weighed by the selloff in beans after a firm start to the day. Planting progress at 62% was still slightly behind the average pace in Monday afternoon’s progress report. Warm dry Midwest weather in the middle of the week will help progress. It’ll be interesting to see if corn can stay above technical support through end of the week, as long funds may be looking for a reason to exit positions. The July chart is grappling with a short term downtrend, but the intermediate uptrend is still in place. Support is the 20 and moving day averages at 398 and 395 respectively. Resistance is the recent high at 408’2. A long term continuous chart paints a rosier picture for bulls with a steadily upward trend still intact for now.
Wheat quietly followed the firmness in corn early, then slid lower with soybeans, but would make a bit of a comeback late to close in the green. Kansas City wheat lent support to Chicago closing up four cents, but struggled to break through resistance. July Chicago wheat has support at the 40 day at 492. Resistance is the 20 day at 503. The slide since the high set May 3rd has been a consolidating one, which figures to continue.
In outside markets, the USD is up having set a fresh high again earlier. Crude is up, but below yesterday’s contract high. Ethanol is lower. The DJIA is up 57 points, taking back some of yesterday’s losses.
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