Bulls control corn, soybean demand softens and wheat stabilizes

Demand, China, imports are factors

Grain, field, horizon, sunrise Grain, field, horizon, sunrise

Corn: During years like this one, where demand falls off with production, we have yet to see any case in which carryout fell under 600 million bushels. Most of those years saw the lowest carryout number on the September report as well. In all, this gives bulls control of the market this week and early next week. Tuesday say the second stalling of December at 815, which continues to suggest that buyers will defend support but are not eager to drive this market toward resistance. Bears can sell bounces in this market but need to know that real technical resistance is not found until 840. More range trade is expected this week with a slight bullish bias…Ryan Ettner

Soybeans: The China National Grain and Oil Information Center said it expected exports could fall below 7 million tonnes, citing crushers slowing purchases on weaker margins. Chinese imports have been the major driver behind these markets and now with more talk of demand slowing, we could see the rally take a breath until we start to get a better idea about U.S. harvest or South American planting…Cordon Sroka

Wheat: Allendale anticipates the wheat market will continue to chop in a sideways pattern over the near term. The shrinking U.S. corn crop should be supportive as more wheat is needed to be fed to offset the corn production losses. Rallies will be limited because the United States is currently selling wheat higher than the rest of the world but this premium is shrinking…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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