Grains Rally but Remain Rangebound

Grain prices are higher on Thursday after rebounding sharply on Wednesday. Corn, wheat and soybean prices ended with gains on Wednesday as traders took stock of this spring’s late planting start. The last start to the planting season has given grain prices a boost.  The cold inclement weather has subsided which should allow planting to catch up.

Corn Prices

Corn prices surged higher on Wednesday, slicing through resistance which is now support near the 10-day moving average at 3.82.  Prices are now consolidating in a tight range in early North American trade.  Resistance is seen near the April highs at 3.92. Momentum is neutral as the MACD (moving average convergence divergence) index prints in the red with an increasing trajectory which points to consolidation.

Soybean Prices

Soybean prices are higher on Thursday rising for a third consecutive trading session.  Weak soil bean oil and palm oil prices are weighing on the soybean oil complex. Support is seen near and upward sloping trend line at 995 and then the 50-day moving average at 981. Resistance is seen near the 10-day moving average at 1035. Momentum is neutral as the MACD (moving average convergence divergence) index prints in the red with an increasing trajectory which points to consolidation.

Malaysian palm oil exports of 1,160,994 metric tons are 2.5% less than what was seen over the first 25 days of March but 34% more than the 866,297 MT shipped over the same period in April 2017. Malaysia has suspended its export tariff on CPO in an effort to reduce domestic inventories, which were on pace to hit all-time highs and remain stubbornly high.

Wheat Prices

Wheat prices are but were unable to pierce through resistance which is a downward sloping trend line that comes in near 4.87. Prices are caught in a wedge pattern consolidating in a relatively tight range but have recaptured resistance which is now support near the 10-day moving average at 472. Additional support is seen near an upward sloping trend line that comes in near 454. Momentum is neutral as the MACD (moving average convergence divergence) index prints in the red with an increasing trajectory which points to consolidation.