Grain Futures Update

News & commentary on Grain Futures markets including wheat, soybeans, corn & more.

WASDE REPORT BASICALLY NEUTRAL FOR BEANS WHILE BEARISH FOR CORN AND WHEAT BUT?

Posted on 4/10/2019 7:26:23 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.




A higher close for soybean oil, unchanged for corn, oats, soybeans and soybean meal while lower for rough rice, Minneapolis, Kansas City and Chicago wheat.  THE WASDE REPORT WAS BASICALLY BEARISH WITH THE BEANS BEING SOMEWHAT NEUTRAL. HOWEVER, THE CORN, BEANS AND MEAL SETTLED UNCHANGED HELPED BY SPREADING AGAINST THE WHEAT. WHAT THIS MEANS, IN MY OPINION, IS THAT THE FORMER TWO MAY BE OVERSOLD AT THE MOMENT AND A SMALL RETRACEMENT RALLY COULD HAPPEN IN THE NEAR TERM. With that being said, weather forecasts and South America grain projections continue to look bearish at this time. Minneapolis has a DOUBLE BOTTOM (May 4- 5) at CONTRACT LOWS that probably won't hold but still needs to be watched. Finally, some of Minneapolis' fall has to do with unwinding of KC and Chicago spreading against it. At least KC and Chicago have been in a consolidating trading range over the last month. Also Chicago's attempt at a bottoming formation is starting to lose steam. I need to see a close over 480 for a possible turnaround. Oats have been making higher highs and lows since the beginning of March while still having a DOUBLE BOTTOM (260) on 3/1 and 3/12 in place meaning it still looks to move higher at this time. On the other hand rough rice has settled lower nine out of its last ten trading days eliminating my buy signal. Then again, is that a possible large bottoming formation that I see on the chart below?  Corn made a new contract low but did end up unchanged. Could it mean a possible retracement rally is on the horizon? Heavy resistance remains between 365 and 405 even with the funds still short overall. You can still sell rallies up to four dollars although doing so at this the time of the year along with the funds being short could cause a higher thrust than normally would be anticipated if the rally happens. The bean complex also remains downward overall with the beans making lower highs and lows since February while the meal is attempting a possible bottom forming off of meal/oil spreading. Otherwise, the bean complex remains weak overall. BUY SIGNAL FOR OATS. SELL SIGNALS FOR SOYBEANS, SOYBEAN MEAL, SOYBEAN OIL, MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG AND ROUGH RICE. For additional charts, quotes, news, commentary & more, sign up for a FREE 30 day trial to markethead.com.


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