Yahoo Finance Corn and Wheat Slide but Remain Above Breakout Levels
Grain prices are giving back some of their recent gains. Corn and Wheat prices have broken out and soybean have lagged given concerns over tariffs in China which are weighing on prices. The soybean crush continues to show robust demand, which should keep soybean prices buoyed.
Corn Prices
Corn prices are lower in early North-American trade on Monday after giving back some of the robust gains seen in the prior week. Target resistance on corn is now seen near the July 2017 highs at 4.39. Support is seen near the 10-day moving average at 3.92. Short-term momentum is negative as the fast stochastic generated a crossover sell signal in oversold territory. 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 lower on Monday after closing on its lows on Friday. Prices appear to be range bound with support seen near an upward sloping trend line at 1003. Resistance is seen near the 10-day moving average at 1032. 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 estimated soybean crush margin was propelled higher by strong meal demand, which outpaced an increase in soybean costs and a decline in soybean oil revenue. The value received from oil and meal sales per bushel of soybeans crushed increased 48-cents, moving from $12.45 to $12.93 in Central IL. Soybean oil prices remain under pressure due to growing inventories. The margin this week was 90% stronger than the $1.35 seen at this time last year.
Wheat Prices
Wheat prices are down nearly 2.5% in early North American trade after surging higher on Friday to finish the week at 9-month highs. Support is seen near the 10-day moving average at 5.03. Resistance is seen near the July 2017 highs at 553. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal in overbought territory. 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. Prices were overbought and have crossed into neutral territory as the RSI (relative strength index) is printing a reading of 65, after hitting the 72 mark on Friday.
This article was originally posted on FX Empire
