Corn, Wheat Offer Glimmer of Hope

March corn once again traded 354 this week matching last week’s high and is currently trading lower at around 352. Momentum indicators on daily charts are overbought and one should expect some additional weakness. Farmers with cash flow needs in JFM should sell this rally. However, after weeks of negativity in the corn market, a glimmer of hope seems to be appearing. The six day run of higher closes that we experienced recently from the 346 low indicates that a seasonal low was scored on 12/15 at 346. Momentum indicators on intraday charts are not as overbought as they are on daily charts and may be giving day traders a buy signal. We actually have a bullish cross of short term moving averages at 352 with strong support at 350. Long term support will be 346.

December corn analyses similar to march corn. A low of 379 was scored on 12/15, that will be long term support. Intraday charts show a bullish cross at 383 which matches the 20 day moving average on the daily chart. 383 is currently short term support. 387 is resistance. Continue to target 390 to advance sales.

The March soybean contract, even though it closed lower on 15 of the last 20 trading sessions, is actually in a sideways trading range. Short term between 1020 and 955, long term between 1050 and 922. Momentum indicators are over sold. Sales should only be made as momentum gets to overbought territory. Target 976 in the March contract to advance sales.

November soybeans demonstrate a similar sideways trading range between 1028 and 927. Support is 974 then 965. Continue to target the 993 region to advance sales.

March wheat support continues to be the 20 day moving average of 423. The contract met our sales objective of 436 and seems to be holding near the 50 day moving average of 433 which will be short term support. The contract is overbought and looks to correct lower. However wheat contracts are demonstrating similarly to corn in that intraday charts are showing some strong bullish crosses of various moving averages. I follow 20, 50, 100 and 200 day (or periods on intraday charts) moving averages and both the 20 and 50 period moving average on intraday charts have shown bullish crosses indicating higher values are ahead. Considering that seeded acres in the US continue to fall, charts have given me a signal that a long term low has been scored and current values have no appeal to farmers, I have no sales recommendations t this time.

July wheat analyses the same as the March contract. No sales recommendations at this time.