March 24, 2016
Grain Marketing Specialist
Export sales to be released this morning. Don’t forget to have your targets working for the Planting intentions report next Thursday, March 31st!
Reminder…No markets tomorrow in observance of Good Friday, markets re-opening Sunday night
CORN- Down 1
Fund buying slowed down on Wednesday as we pull back off our recent highs. Ethanol numbers showed stocks down slightly from last week with weekly production and blender demand down for the week. In the short term outside factors seem to be weighing on prices with the dollar up now 4 sessions in a row and oil dipping back below $40. Export pace has been good and we will need it to stay strong through spring into summer with the trade expecting anywhere from 35-43 mln bushels in today’s export sales report. Technically support for May futures can be found at the gap created early last week at $3.655 with resistance found at 3.72 K16. December futures support can be found at $3.835 with resistance at $3.90. Below is a look at the day chart for July corn with the 100 day moving average.
SOYBEANS- Down 3
The board pulled back off the recent high of $9.14 May futures as we are a week out from the much anticipated planting intentions report. China continues to struggle with crushing margins which makes some worry about their ability to keep taking beans at the pace they’ve been running. Brazil is now around 50% complete with harvest as production and yields seem to be coming in around expectations. Expected sales in today’s report are to be between 15-22 mln bushels as we need around 4 mln bushels a week the rest of the marketing year to reach the USDA’s forecast. Technically, May futures are showing resistance at $9.14 with support found at $8.995 on the 10 day moving average.
WHEAT- Minneapolis Down 2, Kansas City Down 2
No ground-breaking news in wheat as we seem to have found a little consolidation in both markets towards the upper side of the trading range. This may be a decent spot to start throwing some targets in as we are still nearly 30 cents off the lows set a mere 3 weeks ago. Export sales are expected to be between 9-13 mln bushels in today’s report with 9.3 mln bushels needed weekly to reach the USDA’s forecast. Nearby support for Minneapolis futures is found at $5.0475 with resistance at $5.235. Nearby support for Kansas City futures can be found at $4.655 with resistance found at $4.905