Ag Markets Continue Their Losing Ways

Sep corn did not test the resistance of 380 in the past week but broke support of 365 instead, setting itself up for a test of 349, the contract low. This market is very oversold, sales should be avoided.

Dec corn turned lower after trading 390 in the past week ultimately breaking the support point of 380 bringing the risk of a trade to the contract low of 360 into play. Customers following our advice have made sales above 390 and considering the oversold condition of this contract additional sales are not warranted.

August soybeans achieved our short term target of 1002 and traded as high as 1007 last Friday then promptly collapsed breaking support of 970. All support values have been broken and the contract is very oversold.

November soybeans traded as high as 1019 last week but broke lower from there with the lack of threatening weather. The support value of 984 was broken and we now have a risk of a trade to 907. The market is very oversold and would correct higher on any sort of fundamentally supportive news.

September wheat continued its losing ways dropping lower in 4 out of the last 5 trading sessions. While there is a risk of a trade to the contract low of 434 (20 lower) the deeply oversold market condition begs producers to stay on the sideline.