Grain Prices Consolidate Ahead of USDA’s Supply-Demand Report

Grain prices are mixed ahead of Thursday USDA supply-demand report. Corn and soybean prices have pushed higher while wheat prices are slipping.  Traders are positioning for the USDA’s monthly supply-and-demand report which is expected to show a reduction in global grain stocks due to falling production estimates out of South America and the US. The soybean surplus is expected to grow.

Corn Prices

Corn prices are higher in early North-American trade on Thursday and continue to consolidate above support near the 10-day moving average which coincides with the breakout level at 3.95.  Resistance is seen near the May highs at 4.00. Short-term momentum is nuetral as the MACD (moving average convergence divergence) histogram is printing in the black with a flat trajectory which reflects consolidation.

Soybean Prices

Soybean prices are higher Thursday forming a bear flag continuation pattern that is a pause that refreshes lower. Prices appear to be range bound with support seen near an upward sloping trend line at 1006.  Resistance is seen near the 10-day moving average at 1026. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.

The soybean crush margin has surged higher driven by strong meal demand. The July futures crush rallied 22 cents, which was outpaced by the nearly 50-cent climb in the central Illinois crush.  The USDA reported that oil production rose 10% in March, which was matched by meal output which increased 10.3%.

Wheat Prices

Wheat prices are down in early North American trade on Thursday. Support is seen near the recent breakout level at 5.06. Resistance is seen near the 10-day moving average at 5.03. Positive momentum is decelerating as the  MACD (moving average convergence divergence) index is printing in the black with a declining trajectory which points to consolidation. Prices were overbought and have crossed into neutral territory as the RSI (relative strength index) is printing a reading of 60, after hitting the 72 mark last week.