Corn, soybeans look to technicals, while wheat feels expensive

Technicals and fundamentals

Corn, field Corn, field

Corn: With most of the big news likely behind us, bulls will have to rely on other markets for short-term support. Bears can use the same lack of news to offer light selling help but will want to wait for important technical support to be taken out before getting too active…Ryan Ettner

Soybeans: Until we see weather and planting in South America we can still see support, but this would help quench the bears’ thirst for a setback. Stand aside right now and look to buy the 20-day moving average. My hedge recommendation remains buy puts and leave the upside open…Cordon Sroka

Wheat: Allendale anticipates the wheat market will continue to chop in a sideways pattern over the near term. This shrinking corn crop should be supportive as more wheat is needed as feed to offset the corn production losses. Rallies will be limited due to the fact that the United States is currently selling wheat up to $20 a ton higher than the rest of the world. The U.S. selling price is as much as $60 a ton higher that the rest of the world when you add in freight cost. This is limiting the U.S. wheat export prospects…Jim McCormick

About the Author

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Steve Georgy is a Sr. Broker/Manager at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com

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