Grains continued to sell-off over night with soybeans again leading the complex down. In outside markets, a positive US jobs report this morning helped push equity futures higher higher.
After holding pat on Brazil’s production forecasts for the past several months, USDA finally bumped their production forecasts higher in yesterday’s report and in the case of corn, USDA came in well above expectations with a crop of 91.5 MMT vs 87.7 expected. For soybeans, they came in at 108.0 vs 105.9 expected.
The market seems to be reaching a critical mass as fundamentals are getting more bearish while the technical chart picture is turning decidedly negative. Dec Corn breaking below $3.90 gives a new target of $3.76 from the double-top formation on the charts established from the $4.04 highs. Likewise, Nov beans have a triple top of the $10.33 highs with a close below $10 signalling a move to the $9.70 area.
This morning’s US jobs report showed more bullish news for the economy as 227,000 jobs were added in February. That was well above expectations of 193,000 jobs.
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