This Week's Tech Comments

July corn is continuing its sideway trend and yesterday briefly poked above the 50% Fibonacci line I’ve been watching of 374. Support is 368. There is a lot of congestion at the 368 value as many moving averages have consolidated there. There is a risk of a trade to 356 if we close below 368.

Dec corn, like July, has traded miserably sideways in the 387 area but has traded above 392 in the past week. 402 is our target to sell with risk to 375 on a close below 385.

Jul soybeans are seeking a bottom. Stochastics are oversold but with poor fundamentals spec-fund short covering must begin in order to lift us out of this bearish move. Only the fact that the growing season is at hand which typically brings volatility to the market is there a reason to believe that the market can recover from here. The downside risk is to 885.

Nov soybeans are oversold with support at 907 with long-term downside risk to 870. Producers needing coverage should continue to sell small quantities or consider protection in the options market.

Jul wheat continues to test contract lows and everyone’s patience. Support is 421. It should be apparent to buyers that the 2017 harvest will be very short and very quick. Look for continued basis improvement. A word about the 2018 crop. It is clear that the world will still be awash in wheat even after the very small 2017 harvest. The market’s job will continue to be to discourage wheat growers from seeding wheat this fall.