Ag Futures this afternoon closed modestly higher following a list of bullish influences led mainly by old crop soybeans. Today Argentina cut its production area for soybeans to 16.5 million hectares down from 17.8 million hectares. The forecast for corn was also trimmed from to 3.4 million hectares down from 3.5 million hectares. This all following strong export inspections this morning for soybeans. Although the grains remained within Tuesday's wide trading ranges Until the rain is in the gauge in South America the downside on especially soybeans appears to be limited. Strong support basis front end soybean futures lies at 9.60 with resistance lying at 10.60. Corn appears to be following along for the ride, but fundamentally speaking has trouble developing a bullish argument from the demand side of the equation. Support basis front end corn futures lies at 3.50 and resistance at 4.00. In outside markets, Dow Jones closed back above 8000 points at 8228. Crude oil trading at 43.95 basis March Futures above yesterday's highs at 43.79. The Dollar Index near lows at of the day at 86.05 down 80 points. With this being said, grain markets appear poised for a gap higher opening tomorrow unless weather forecasts improve rain events for South America overnight.
Jeff Neisler
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