January 27, 2016
Grain Marketing Specialist
Ethanol numbers to be released this AM
Corn remains range bound as there is limited news in the marketplace. The Federal reserve today meets for the first time since they increased rates last month, little is expected from this meeting. Technically, March corn showed the first doji star seen since January 7th. Generally speaking, these doji stars usually represent indecision in the market. Looking back at the last doji star on January 7th we rallied 19 cents over the next two weeks. Exports continue to lag as we are still down around 25% on shipments versus last year at this time. Nearby resistance for March futures remains at the 100 day moving average of $3.79 with support found at $3.6525.
SOYBEANS- Up 3
Weather in South America looks okay as Brazil continues to receive rains and Argentina is beginning to look on the dry side. China demand remains good this year with exports setting a record for bushels shipped in the month of December. Technically, momentum has slowed down on beans as we seem to be finding some consolidation until new news arrives. Nearby support for March beans is found at $8.705 with resistance located on the 100 day moving average of $8.79. Below is a look at the day chart for March beans with the 100 day moving average, notice how we have been fighting this resistance since early December.
WHEAT- Minneapolis Down 1, Kansas City Down 3
Biggest news in the world market seems to be focused on Russia as they may cut their export tax to curb domestic inflation. Bangladesh bought wheat yesterday from Switzerland and Russia and Egypt continues to deal with ergot issues on the import side. Many analysts suggest wheat exports to be relatively flat in the 10-15mln bushel range over the next month. Next week’s forecast looks to be producing a strong precipitation system that will hit many HRW areas next Monday and Tuesday.