Grain support tested; bulls take profits and bears dig in

Tide turning for high grain prices

Cornfield, corn Cornfield, corn

Corn: Bulls will need to see an overnight export announcement soon. Not only would that show that corn has fallen to a buyable level, but speculators might feel they have found an area to stand ground as well. Bears are going to ride right along with the funds because they know that trading against the funds is never a good idea. That is something that any bear quickly learned on the rally higher. Next support levels for December corn are 745, which held on Monday, and then after that 685 1/4…Ryan Ettner 

Soybeans: Trade would now believe USDA will increase its estimate of plantings in October. We compute that increase could be 872,588 acres. This was a big surprise and had long positions taking profits. We feel this could continue for now. A failure to close back above 1691 tomorrow leaves a move to 1650 and 1600 as the next targets…Steve Georgy

Wheat:  The Farm Service Agency revised the estimate of planted acres for producers who are in the farm program. This FSA number is combined with the USDA’s own acreage survey number to come up with the final planted acres number on the October report. We estimate the new September, if it covers 95.4% of all producers, like last year, would imply a potential drop of 596,703 acres. Bottom line on the wheat is as long as we see the corn market pulling back we will see pressure on the wheat, but any export ban for Russian wheat would spark a test of the recent highs…Cordon Sroka

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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