Grain Prices Break Out Led by a Surge in Corn and Wheat

Grain prices are breaking out, with Wheat gapping higher as hedge funds are caught short in wheat and will need to scramble to cover.  Colder than normal weather is expected to cover most of the mid-west over the next 2-weeks according to a forecast from the National Oceanic Atmospheric Administration. The planting season has gotten off to a very slow start which has helped all three major grains.

Corn Prices

Corn prices are breaking out in early North American trade. Prices hit a fresh 9-month high and are poised to test target resistance at 3.94.  Support is seen near the 10-day moving average at 3.83.  Momentum has turned positive as the MACD (moving average convergence divergence) index 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).

Soybean Prices

Soybean prices are higher in early North American trade on Monday, climbing 0.8%.  A solid crush report from NOPA shows strong demand for soybeans. Support is seen near the 10-day moving average near 1035. Resistance is seen near a downward sloping trend line that comes in near 1066. Momentum has turned positive as the MACD (moving average convergence divergence) index 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).

According to recent NOPA crush data, the March crush easily surpassed analyst estimates and became the largest monthly crush for on record.  171.858 million bushels were crushed vs analyst estimates of 167.50 million.  Crushing activity was up 11.80% from February and 12.38% more than March of 2017. Meal exports totaled 878,582 tons, up 16.35% month over month but 16.88% less than last year.

Wheat Prices

Wheat prices gapped higher climbing 1.3% in early North American trade on Monday. Prices are poised to test resistance near the March highs at 5.06. Support is seen near the former breakout level at 486. Momentum has turned positive as the MACD (moving average convergence divergence) index 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).