Closing Comments
Lynn Miller
October 6th, 2015
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Corn:
The focus of the corn market remains the potential reduction in acres from the USDA on Friday, it’s providing opportunity for now. The fact that the dollar was down and crude managed a rally also helped commodities quite a bit today.
Technically all three indicators remain positive the December corn futures. With today’s price action we may have started a new support level at $3.94, bu I’m not very hopeful with the stocastichs overbought at 90.12. I believe we are probably setting up for a technical correction in here, maybe w/ the report Friday? My price objects continue to hold until we can make a bolder move. Today’s close of $3.30 cash is good selling point if you need cover bushels destined to go to town and avoid DP charges. My next targets would be $4.06, $4.18 and at the top end of the range $4.29 from the gap left back on 7/17.
Soybeans:
Other than speculation of the USDA report and reduced production, there was no new news to trade today. No matter what the numbers are, the fact is we have a big bean crop her in the USA.
Technically, all three indicators are once again bullish the November futures. That trend line is really showing its muscle as we continually bump against that. With the stochastics in neutral territory I wouldn’t be surprised to see a trend change here, the clencher is we need to find a story big enough to provide the momentum. If we can’t get that momentum we are probably doomed to more downside pressure. My price objectives remain at 8.99, 9.27 and 9.50.
Wheat:
Most the wheat action today can be summed up in ‘short-covering’, or hind-end covering, as we get ready for the USDA’s numbers Friday morning.
Technically, all three indicators are once again bullish the December Minneapolis futures. We are currently trading over both the 10 and 50-day moving averages. As for a support, the main level is back to contract lows at $4.99. We still haven’t generated enough momentum to change my targets: $5.35, $5.58 and $5.76.
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