Corn threatens support, while soybean and wheat demand firm

Grains and oilseeds report

Cornfield, corn Cornfield, corn

Corn: Even with the recent bearish news, corn should still be able to hold support due to the low volume of sellers in this market. Just as a look forward, if the 732-1/4 support is taken out, next support would be 705. Bears will continue seeing exports going to other countries, which might eventually be enough to break support. Bulls will continue keeping eyes open for any improvement on the demand side, either ethanol or exports with no clear outlook for when that improvement will occur…Ryan Ettner

Soybeans: Monday's harvest progress report was delayed due to the storm. The trade is anticipating that 87% of the crop has been harvested, up from 80% last week. The three-day Rogers Commodity Index roll starts on Wednesday, and the Deutsche Bank roll starts on Friday, while the Goldman Roll will start on Nov. 7. They believe that the soybean market will find good support on breaks as the demand for U.S. beans remains strong and the trade remains concerned about possible production problems in South America…Jim McCormick
Wheat:  Wheat finished lower Monday as we saw liquidation across the grain complex led by the beans. South Korea made a purchase of 64,800 tonnes of milling wheat, 38,800 tonnes from Australia and 26,000 tonnes of U.S. origin. U.S. wheat is becoming competitive on global markets, but feed value is still the main driver behind U.S. prices.

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.

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