Grains Move Lower Following Latest WASDE Report

Grain prices are lower in early North American trade on Friday following Thursday USDA World supply and Demand report.  The latest WASDE data showed the 2018/19 outlook for US soybeans to reflect higher supplies, crush, exports, and lower ending stocks compared with the 2017/18 crop.  2018/19 corn use is forecast to decline modestly from a year ago on reductions in domestic use and exports.  However, corn used to produce ethanol is forecast 50 million bushels higher, largely due expectations of gasoline consumption growth. The 2018/19 wheat crop is projected at 1.821 billion bushels, up 5% from last season, due to greater harvested area and a slightly better yield.

Corn Prices

Corn prices are lower in early North-American trade on Friday and continue to consolidate above the breakout level at 392.  Resistance is seen near the 10-day moving average at 3.95 and then the May highs at 4.00. Short-term momentum is neutral 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 lower Thursday and are hovering above trend line support near 1006. Resistance is seen near the 10-day moving average at 1022. 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 fast stochastic is printing a reading of 12, well below the oversold trigger level of 20 which could foreshadow a correction.

Soybean export sales for the 2017/18 marketing year came in at 354.3 TMT, down 15% from last week and 58% less than the prior 4-week average.  Sales for the 2018/19 crop year totaled 278.3 TMT, lifting combined sales to 632.6 TMT.

Wheat Prices

Wheat prices are down in early North American trade on Friday. Support is seen near the recent breakout level at 5.06. Resistance is seen near the 10-day moving average at 5.18. 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.