In the overnight session the grains rebounded a bit after breaking through key support yesterday. The dollar index remains steady and crude oil has fallen a dollar overnight. Corn is up 2 1/4 cents, soybeans are up 6 cents and wheat is up 2 1/2 cents this morning. Today the FOMC statement will be released at 1 PM CST. Traders are watching the statement closely for indication that the first rate hike since 2006 may be near.
In the overnight, corn and soybean prices are testing the failed support levels that were broken during yesterday’s trade session. These support levels are likely to turn to resistance after failing to support prices in yesterday’s trade action. Keep a close watch on prices around 3.73 ¾ for corn and around 9.61 ¾ for soybeans.
China purchased over 600,000 metric tons of corn from Ukraine this year which is not a positive story for the U.S. corn market. China, a country which typically doesn’t import large amounts of corn, has turned to Ukraine to source its needs. In a statement made this month, China intends to double the nearly one million metric tons of corn it imported from Ukraine in 2014. In January Ukraine shipped 470,000 metric tons to China, which was well over the amount exported to China by the U.S.
