Today the grains closed modestly higher in Chicago with May Corn up 13 and near the high, with May Soybeans also up 15. Although we had some supportive news the grains seem to be following outside markets. The Dow Jones closing up 149 pts and Crude oil closing up $3.55/barrel.
Corn closed higher and is trying to take a sideways short term stance to insure that acres end comfortably. Though, with recent price action in comparison to soybeans seems as if corn is a good sized premium now. Seasonal tendencies are to rally corn in March though we are caught in the biggest debacle of recent history in the financial sector. Technically, speaking corn is still trapped in a long term downtrend though fighting to challenge its way out. The downtrend line drawn off summer highs comes in at 3.96 basis December futures followed by the 20 day moving average offering resistance at 4.00 basis December futures.
Soybeans closed higher following mixed signals from mainly fundamental sources. The soybean market is trying to discourage new crop acres while balancing a potential Argentina strike and rumors of China buying 3 cargoes of old crop soybeans. I personally feel that the soybean market has discounted the new crop acreage intentions a bit too far this early in the year. Seems as if the Nitrogen market is giving us a few signs that acres are moving into corn as we speak especially locally.
Up coming news:
USDA Export Sales 7:30am Thursday expectations as follows:
450-750MT Corn
400-700MT Soybeans
Jeff Neisler
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