by Dustin Weiner
Overnight the corn market was able to carve out some small gains and soybeans kept their head above water until just before 7am this morning when another wave of selling came in, allowing it to drip lower. After yesterday’s big losses, March beans are testing their 200-day moving average of $12.76 this morning. If that fails the next spot for support (on a chart) could be the January lows down around $12.65.
The story in soybeans hasn’t changed – it is all South American weather and the forecasts look good. The main weather system in Argentina is supposed to occur later today into tomorrow with additional rains in the forecast for next week. Yesterday’s soybean market was spooked by rumors of Chinese cancellations – no confirmation on any of that yet. It is probably a little too early for boats to start switching…
The corn market is pretty quiet. Most processor basis bids are flat/steady while gulf basis is slightly firmer. With the recent (and familiar) downward trend in corn prices, producer selling has been limited. This feeling of steady demand mixed with limited farmer activity could be what is supporting corn futures this week. No – this probably isn’t something that will cause a sharp rally in corn but maybe it will help corn establish a short term bottom?
Corn 1 to 2 cents higher
Soybeans 2 to 4 cents lower