Craig’s Closing Comments
February 27, 2015
Corn:
Not much news in the market today but with beans rallying based on the logistical problems in Brazil and wheat higher on cold weather fears the path of least resistance was higher for corn today as well. Longer term we appear to be uncompetitive in the export market and thus should see some price readjustment to get competitive.
At the current time all three of my technical indicators are bullish. Look for this market to continue to chop.
Soybean:
The trucker strike seems as if it holds the key to this market at the present time. This morning it was reported that only 33 trucks made it into the docks yesterday at Paranagua when normally this time of year they unload over 900 trucks daily.
This delay of exports out of Brazil is causing the bears to cover their shorts and has led to the strength in beans this week. There seems to be concern in Brazil as well as in China that the Brazilian ports will be unable to meet their contractual obligations and thus China appears to be pushing some business back to the USA.
This afternoon the reports are that roads are opening at a slow pace as 6 states are reporting closures out of the 29 Brazilian states. Fines and some arrests have been reported. It appears as if the government is getting serious about cracking down on it which should get things flowing again.
The only other factor that may have been at play today was the end of the month fund activity which found them as buyers today.
All three of my technical indicators are currently bullish.
Wheat:
Wheat was up on the concern over potential winterkill in parts of Nebraska and Kansas. The central and southern plains are forecast for temperatures so cold that we may see fire departments in some cities called out to chop dogs free from fire hydrants. The forecast had bears exiting their shorts in a display of caution throughout todays session.
At the present time two of my three technical indicators are bearish the Minneapolis May futures while two of three are bullish the Kansas City May futures.
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