December corn caught a small bid yesterday and again in the overnight session, currently trading up 3 ½ cents at 7:30am CST. With not much news on the fundamental forefront this is minor short covering and a technical trade. Weather forecasts seem fairly neutral for the intermediate term, however the extended forecasts do look a little drier for mid-late august which could offer support to the market.
A lot of farmers are not wanting to sell at these prices and are starting to buy holding bags, if farmers start clearing out their bins to make room for new crop, expect a lot more pressure on the price. Corn is up this morning and hitting our two star resistance level at 376-4 and a close above here will encourage a firming trend.
Resistance –376-4**, 386-2-388**, 395-6-398-6***, 406-2*, 410-414-4**
Pivot - 370-4
Support –361-6* , 335**, 324-4**
Soybeans caught a nice bid yesterday with the November contract closing up 18 ¾ cents and we are up another 22 cents this morning at 7:30am CST. Weather premium is being pumped back into the market with the extended forecasts calling for hot and dry weather for much of the Midwest for mid-late August.
The call for hot & dry weather is starting to trigger a short cover and could extend the prices higher if those forecasts keep rolling out. Soybeans are made in August so weather forecasts will be a major factor going forward. The levels continue to work great with the first major overnight high hitting resistance at 1078-4-1081; this will now be major support going forward. A close above 1094-1096-6 will keep the market bullish but a close above previous swing highs at 1118-6 is need to spark a short cover.
Resistance –1094-1096-6**, 1110**, 1118-6**, 1128*, 1132-1133-2**
Support – 1088*, 1078-4-1081**, 1065*, 1055**, 1042**, 1009**