Slow Start to Planting Season is Keeping Grain Prices Buoyed

Grain prices were lower Tuesday and continue to consolidate after dropping last week. Weather has kept prices buoyed as a report from the US Department of Agriculture showed that farmers have planted less of that and other crops than by this date in recent years. The USDA said farmers had planted 5% of this year’s corn crop  by April 22, compared to 15% of the crop by April 22 last year. Farmers likewise sowed just 2% of this year’s soybeans and 3% of spring wheat by April 22, compared to 5% and 21% of those crops respectively by that time last year

Corn Prices

Corn prices are edging sideways and holding support near a sloping trend line that comes in near 3.75.  Resistance is seen near the 10-day moving average at 3.82. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in the black with a downward sloping trajectory which points to lower prices.

Soybean Prices

Soybean export activity for the week was down 31% from the prior week but 12% more than the prior 4-week average.  2018/19 export sales were 1,091 TMT.  Combined season sales were down 13.5% week over week. Total export commitments are 96% of projections with 20 weeks to go and need to average 108 TMT in weekly sales to meet forecast. Current export sales are 3% behind last year’s pace.

Soybean prices are lower and barely bouncing following a sharp drop on Monday.   Support is seen near and upward sloping trend line at 995 and then the 50-day moving average at 981. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.

Wheat Prices

Wheat prices are moving lower in early North American trade. Prices are caught in a wedge pattern consolidating in a relatively tight range. Resistance is seen near the 10-day moving average at 470. Support is seen near an upward sloping trend line that comes in near  454. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.