Corn faces possible slow grind lower; soybeans, wheat neutral

Grains and oilseeds report

Soybeans Soybeans

Corn: Next chart support is 705 in the December corn. That level was strong support once before, but has never been tested again since. Bulls will use this level as a buying point because if it is broken the next support level is tougher to find. In all, the fundamentals are slightly negative due to South American weather and the technicals have beans pulling on the corn as well. We look for a turnaround Tuesday but then a potential slow grind lower to follow. Bears have the fundamentals while long-term bulls continue to exit long positions…Ryan Ettner

Soybeans: After taking out the 200-day moving average Monday, the next chart support on the January beans is at 1392. With a bulk of the South American growing season left, weather could still have a big impact on their crop. With the market down to the $14.00 level, we would recommend end users secure some of their needs in case the South America weather turns for the worse. We would recommend using options to secure ownership to reduce risk…Jim McCormick
 
Wheat: South American weather is looking good, which is taking feed demand off the table for wheat as South American corn continues to look like a better option on the global feed market. Remember that crop progress and export inspections will be released Tuesday because of Monday’s federal holiday. Look for a test of the lower end of the trading range but do not be surprised if we see a turnaround-Tuesday bounce…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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