Corn and Soybeans Rally, Wheat Drags on Grain Complex

Corn and wheat prices surged on Friday and continued to remain buoyed Monday following an unexpected planting report from the on Thursday. The USDA’s Prospective Plantings report showed projected soybean and corn planting intentions below market expectations. Analysts had expected soybean planting intentions of a record 91.1 million acres and corn intentions at 89.4 million, but USDA reported soybean planting intentions of 88.982 million acres and corn intentions of 88.026 million. Despite the lower-than-expected intentions, soybean acreage is still expected to exceed corn acreage for the first time since 1983 and the second largest planted area in history. However, corn acreage would fall to its lowest level in the last three years and the second lowest level in the last 12 years.

Corn Prices

Corn prices broke and of a downward sloping trend line and are poised to test the July 2017 high at 393 per bushel. Support is seen near the 10-day moving average at 377.  Momentum has turned positive the MACD (moving average convergence divergence) index recently generated a crossover buy signal.  This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the black with a down sloping trajectory which points to higher prices. The RSI reversed higher reflecting accelerating positive momentum.

Soybean Prices

Soybean prices broke out above trend line support on Thursday following a smaller than expected planting intentions number.  Prices sliced through trend line resistance which is a downward sloping trend line that comes in near 1031. Prices are poised to test resistance near the March highs at 1071.  Support is seen near the 10-day moving average at 1030. Momentum has turned positive the MACD (moving average convergence divergence) index recently generated a crossover buy signal.  This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the black with a down sloping trajectory which points to higher prices.

Wheat Prices

Wheat prices were unable to gain traction following a neutral to bearish planning report. Positive momentum has been driven by soybeans and corn. Support is seen near the 10-day moving average at 452 and the March lows at 441. Resistance is seen near the March highs at 506.  Momentum has turned negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal.  The MACD histogram is printing in the red with a down sloping trajectory which points to lower prices.