Grain Prices Consolidate but Wheat Begins to Rebound

Grain prices were mixed on Thursday in early North American trade. Weather had been the main catalyst early in the week for Wheat and then the National Oilseed Processing report for beans on Wednesday. NOPA’s latest crush easily surpassed analyst estimates and became the largest monthly crush 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.

Corn Prices

Corn prices rebounded late in the session on Wednesday and are nearly unchanged on Thursday. Resistance is seen near the 10-day moving average at 385. Support is seen near an upward sloping trend line that comes in near 378.  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).

Soybean Prices

Cumulative bushels crushed by NOPA members during the 2017/18 season are 1.119 billion. The USDA is expecting to grow the crush by 3.63% to a new record of 1.970 billion bushels. The 2016/17 crush totaled 1.901 billion bushels.

Soybean prices ending the Wednesday session lower and are nearly unchanged Thursday moving through support near the 10-day moving average which is now seen as resistance at 1046. Support is now seen near the 50-day moving average at 1033. Momentum is negative as the MACD is poised to generate a crossover sell signal. The MACD  (moving average convergence divergence) histogram is printing in the red with a declining trajectory which points to lower prices. The RSI (relative strength index) also broke down which reflects accelerating negative momentum.

Wheat Prices

Wheat prices rebounded from its recent lows on Wednesday and are higher by nearly 0.5% on Thursday. Prices recaptured resistance at the 10-day moving average at 475. Target support is seen near and upward sloping trend line at 450. Target resistance is seen near a downward sloping trend line at 490. Momentum is neutral as the MACD is prints near the zero-index level with a flat trajectory which points to consolidation.