Soybean Stabilize After Sharpe Drop, Wheat and Corn also Consolidate

Grain prices are stabilizing after a steep drop on Monday. Soybean prices were hammered, with wheat following suit and corn lagging. Export activity moved higher in the latest week, but the 4-week average was down. Current export sales are 3% behind last year’s pace.

Corn Prices

Corn prices are lower in early North-American trade on Tuesday consolidating Monday’s losses.  Target resistance on corn is seen near the 10-day moving average at 3.93.  Support is seen near the 50-day moving average at 3.83.  Positive momentum as reflected by the MACD is decelerating as the The MACD histogram is printing in the black with a declining trajectory which points to consolidation. Look for prices to edged toward support before resuming its path higher.

Soybean Prices

Soybean prices are slightly higher Monday after getting hammered on Monday. Prices dropped more than 2.3% on Monday, holding just above support near an upward sloping trend line that comes in near 1003. Resistance is seen near the 10-day moving average at 1029. 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.

Export activity was up 65% from the prior week but old crop sales were 59% less than the prior 4-week average.  Total export commitments are 97% of projections with 18 weeks to go and need to average 79 TMT in weekly sales to meet forecast. Current export sales are 3% behind last year’s pace.

Wheat Prices

Wheat prices have stabilized after tumbling on Monday. Support is seen near the 50-day moving average at 4.94. Resistance is seen near the 10-day moving average at 5.13. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal. 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.