December 19, 2017
Grain Marketing Specialist
March corn holding close to the new established low of $3.46. Export inspections, released yesterday, were reported at 23.4 million bushels. This was well below the 40.8 million bushels needed weekly to keep pace with USDA predictions. The overall trend is still bearish as adequate supplies, and slow exports keep pressure on corn. One thing to look at is the Daily Stochastics Chart. This chart measures the short-term technical momentum. As we can see, where the arrow is pointing, that we are in an oversold situation, and may be on the verge of a pop in the market as we progress closer to the end of the year. Time will tell.
Yesterday's overnight and early morning trade looked as if we might see the soybean market regroup after falling from the newly established high of $10.15 Jan futures. This was not to be the case as precipitation did fall in crucial areas of South America and therefore pressured US soybeans. The Export Inspections Report, released yesterday, showed that 65.2 million bushels of soybeans were inspected. This is much higher than the 33.3 million bushels needed to keep pace with USDA predictions. Technically we see that Jan soybeans are finding support at $9.60. Stochastics are also presenting an oversold situation, but lack of any positive news may keep the soybean market stagnant as we say good bye to 2017.
Export Inspections, reported yesterday, came in at 21.5 million bushels. This was higher than the 18.7 million bushels needed weekly to keep up with USDA predictions. Dryness continues across the plains, with some traders expressing concerns of possible winter kill if temps get extremely cold. Technically we are seeing a small uptrend as KC Wheat starts moving towards its 20-day moving average of $4.25.