Corn finds support, soybeans undervalued, wheat drifts

Grains and oilseeds report

Wheat Wheat

Corn: Even though the fundamentals are not the best, we cannot deny that support has been found in corn more than the other grains. Corn has opened up a new range from 708-3/4 in March corn all the way up to 775-3/4. Breaking first support was impressive, but it is hard to imagine that March corn would be breaking the next support anytime soon…Ryan Ettner

Soybeans: Soybeans are undervalued at these price levels. With this in mind, we recommend end users secure some of their needs in case the South America weather turns for the worse. We would recommend using options to obtain ownership as a way to reduce risk...Jim McCormick

Wheat: Outside markets are helping push the wheat higher Monday, with the dollar down 40 and Dow futures 150 points higher. Continue to watch the outside markets and look for the trade to take profits moving into the holiday. Until we see exports increase, do not expect this market to establish much direction…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.

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