Closing Comments
Lynn Miller
December 29th, 2015
Corn:
Once again, a no new news kind of trading day. After a sell off this morning, corn settled back into its standard sideways trading range. Grain transportation issues were the main concern of the day with the Missouri closed at St. Louis due to heavy flooding. Farmer movement is non-existent and the funds are not ready to go shorter with only 8 days until the USDA’s annual production report.
Technically, all three indicators continue to be bearish the March futures. Although they are not signaling a buy yet, the stochastics made a steep swing upward. Nearby support continues to hold at $3.61 even though we traded through it significantly early session. My selling targets would be $3.66, $3.70, $3.75, $3.82 followed by $3.92.
Soybeans:
So, the trade started out acting like yesterday’s double digit losses were a mistake with the intent of filling the gap left behind, and then… Well they remembered how heavy China stepped in to buy last time we neared $8.60 and the slowed down the rally. Chinese crush margins have improved significantly and the hope is we will see these lower prices draw big sales before they shift business off to South America.
Technically, all three indicators continue to be bearish the March futures. Nearby support continues to hold at $8.54. My selling targets would be $8.68, 8.77, $883, $8.90 then $9.12 and $9.34 if you really want to reach.
Wheat:
Wheat continues to be a ‘Peat and Repeat’ kind of story. Black Sea currency continue to fall against the dollar, making US sales even tougher to make, then you have snow and cold temps in Russia and the Ukraine that could pose a problem for their crop. Other than that, what we got today was follow-through buying from the funds after technical support held yesterday. Many traders are on vacation and cash movement is nearly dead.
Technically, two of three indicators remain bearish the March Minneapolis futures. However, technically, things are moving. The stochastics finally issued a buy signal in deep oversold territory. We touched the 10-day moving average, but were unable to hold it at the close and the MACD wants to come together. Nearby support appears to have held today at $4.90. My price targets now would be $5.07, $5.17, $5.25 and $5.32.
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