Wheat "Anchors" Market

Even though we penetrated the contract low in December corn last Thursday support of 344 has held and the contract is now tracking the 20 day moving average of 350. I would expect corn to continue its sideway trend with a tendency to weaken as we near the November USDA supply and demand report. The trade will likely be on the defensive anticipating the risk of USDA once again raising the national average yield on corn.

November soybeans have been trading above the 200 day moving average of 975 since last week’s USDA supply and demand report. Resistance is 997. Like corn, expect soybeans to trade sideways during the next few weeks with a defensive slant heading into the Noverber Supply and Demand report.

There has been little change in the outlook for wheat. Support is the contract low of 423. A bearish signal is developing as the 50 day moving average is converging on the 20 day moving average. A continuation of a sideways or lower market will cause these lines to cross and add to the bearish tone in wheat. There are no sales targets in wheat at this time.