December 21, 2011
By: Craig Haugaard, Grain Origination Manager

CORN: 4 lower

A trifecta of terrific news drove the commodity prices higher yesterday.  Outside markets surged nicely with crude oil up in excess of $3/barrel while the dollar was lower for the session.  In South America fears of drought continue and with 21% of the corn in Brazil now pollinating will gain additional attention in the days that lie ahead.  Finally, the has moved enough to the upside to attract additional technically driven selling and it was these three factors that combined yesterday to give us a session that closed nicely higher for the day.  With all of my technicals now pointing higher I am looking to the Fibonacci numbers to see where resistance should come in to this market.  In looking at the March futures I would expect this rally to encounter resistance at $6.15 and $6.39.

SOYBEANS: 6 lower

The same three factors that propelled corn higher boosted beans to a higher close as well.  The center of attention will continue to be the drought fears coming out of South America.  While there appears to be some rain in the forecast the pattern at this point appears to be for less rain than normal. 

Technically, all three of my indicators are bullish.  If we go to the Fibonacci numbers it would appear as if we should see resistance to this rally in the March futures at $11.76 and $12.20.

WHEAT: 5 lower

Wheat hooked a ride with the rest of the commodities and thus was able to post a higher close.  We are seeing good moisture move into HRW country and thus that situation is expected to improve.  From a technical perspective all three of my technical indicators are bullish both Minneapolis and Kansas City futures.  Looking at the March Kansas City futures I would expect to see resistance to this move come in at $6.83 with additional resistance at $7.13.

The information contained above was taken from sources which Wheat Growers believe to be reliable, but is not guaranteed by Wheat Growers as to accuracy or completeness and is made available for information purposes only.  There is a risk of loss when trading commodity futures and options.