Corn Bounces After Breaking Down Through Support Wheat and Soybeans Follow

Grain prices are higher across the board in early North American trade. Corn rebounded after breaking down through trend line support. Export sales were higher than expected in the latest week but failed to buoy prices.  Hedge fund traders barely changed their positions in corn while adding to short positions in wheat futures and options.  Tariff issues remain as the Trump Administration levied trade Steel and Aluminum tariffs on Europe, Canada and Mexico which could eventually experience retaliation on farm products.

Corn Prices

Corn prices rebounded after breaking down through trend line support near an upward sloping trend line that comes in near 3.86. Support is seen near the June lows at 3.80. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.

Weekly corn export sales for the 2017/18 marketing season of 993.1 TMT were up 16% from last week and 12% more than the prior 4-week average.  New crop sales of 270.9 TMT lifted combined sales to 1,142.4 TMT.

Soybean Prices

Soybean prices edged higher in early North American trade holding above support near an upward sloping trend line that come in near 995. Resistance is seen near the 10-day moving average at 1024. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.

Wheat Prices

Wheat prices are higher in early North American Trade. Support is seen near and upward sloping trend line at 5.05. Resistance is seen near the 10-day moving average at 525. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.

Wheat export sales for the 2017/18 marketing year came in at 29,500 metric tons, down 74% from last week and the 4-week average.  New crop sales totaled 270.9 TMT, lifting total sales to 300.4 TMT. Combined sales were down 34% week over week but within analyst expectations that ranged from 50 to 550 TMT.