No Sales Warranted

The past week has been marked with mostly bad news for Ag commodities causing values to slip. Slumping export sales continued stories of how the Chinese plan to eliminate US soy from their needs and an uptick in harvest pace to name a few. But none of these issues are new to the trade therefor one should expect the market to find support soon.

November soybeans broke support at the 50 day moving average at 854. We now have downside risk to 832. Resistance is the 100 day moving average at 875. As you see we are trading a pretty tight 20 to 30 cent range which is indicative of a market that just doesn’t know which direction to go. The missing piece of information that we need is the final production number which won’t come until the December supply and demand report. But it is certain that yields are trending lower, not higher. Sales are not warranted here.

December corn penetrated support on Thursday at 364. If we close below 364 then downside risk is to 358, 350. L:ike soybeans, corn is trading in a very narrow range and looking for direction. The harvest pace will likely be bearish. Market momentum points lower but no sales are recommended here.

December wheat is testing support at 489. The July 2019 broke support at 542. Both contracts are very oversold therefore no sales are recommended.