In the overnight session the grains traded lower with corn down 2 3/4 cents soybeans down 5 3/4 cents and wheat down 7 cents this morning. The U.S dollar is up a 1/4 of a percent and crude oil is down 35 cents this morning. China’s stock market turned lower in the second half of Wednesday’s trading session closing 3 percent lower. China’s selling pressure in the equities could have a negative impact on soybeans this morning.
Weather over the next 8-10 days is looking to provide drier conditions for the corn crop throughout the Midwest providing Missouri and the eastern grain belt a break from the heavy rains that have saturated soils and damaged yield potential throughout the east. With the weather turning positive for crop development, and crop ratings unchanged in the latest crop progress report, the grains may give back some of the recent price gains. Producers should seriously consider some sort of price protection at this juncture. Give the office a call at 877-472-4607 if you have questions about your situation.
The charts are also raising a warning flag for corn in particular. December corn reached a critical resistance level of $4.54 yesterday which was near a previous low set back in January and again in June of 2014. That price level which acted as support in 2014 acted as strong resistance on Tuesday. Furthermore, the 100 period moving average on the weekly chart is currently at $4.40, and could also provide some resistance to any attempted move higher. With the weather turning positive and the charts showing clear resistance around these levels we are concerned that prices could come under pressure over the next few weeks.
