Corn bulls bide time, while soybeans focus on South America

Grains and oilseeds report

Cornfield, corn Cornfield, corn

Corn: Bears still control this market from the demand side with both exports and ethanol production running behind expectations. Slow volume might actually help the bulls lie low until Thursday, which could offer some bullish news to get started with. Most important for corn bulls, 714 1/4 and 708 3/4 support levels need to hold…Ryan Ettner

Soybeans: According to Brazil analysis firm Celeres, soybean planting has reached 97% complete. Last year was 98% complete. Argentina continues to struggle to get the crop in. They are running about 10% behind last year. If the rain does not break soon, not all the areas may not get planted. If it looks like Argentina cannot get all the soy crop in, this might be what it takes the market above the $15.00 resistance level…Jim McCormick
Wheat: Outside markets need to be watched as we move towards the fiscal cliff. We could see money move to the sidelines as the financial reckoning approaches, and with the current fund position on the long side of the wheat we could see money come off the table. After this break out to the downside we should expect to sell wheat on rallies moving forward…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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