Yahoo Finance Daily Grains Analysis for March 16, 2018 – Wheat Drops, Soybeans Rise as Meal Demand Increases
Grain prices were mixed in early North American trade on Friday. While prices of Wheat were lower, corn was stable and soybean moved higher. The most recent crush report from the National Oilseed Processing Association shows that demand for soybean meal continues to rise, buoying the price of soybeans.
Corn Prices
Corn prices are now consolidated and forming a bull flag pattern which is a pause that eventually refreshes higher. Corn prices continue to hover near resistance which is near the July 2017 highs at 3.94. The first level of support is seen near the 10-day moving average at 3.83. Momentum remains positive but is turning neutral as the MACD (moving average convergence divergence) histogram prints in the black with a declining trajectory which points to consolidation. The relative strength index is printing a reading of 72, above the overbought trigger level of 70 which could foreshadow a correction.
Soybean Prices
NOPA reported a record February crush of 153.7 million bushels that was 5.3 million bushels above market expectations and 10.9 million bushels above last February’s total but was down 9.4 million bushels from January’s total. Assuming NOPA represents about 94% of the industry implies an industry crush of 163.5 million bushels and a record daily crush rate of 5.8 million bushels that was up 211,000 bushels per day above last month and 448,000 bushels per day above last February. The implied daily crushing rate for the industry, was just below the markets estimated industry daily crushing capacity of 5.9 million bushels. The stronger-than-expected crush was driven by continued strength in domestic soybean meal demand.
Soybean prices are higher on Friday in early morning trade. Prices tested resistance near the 10-day moving average at 1045 per bushel. Support is seen near the March lows at 1023. Negative momentum has decelerated as the MACD (moving average convergence divergence) index prints in the red with a declining trajectory which points to consolidation. The RSI (relative strength index) is chopping sideways printing a reading of 57 which is in the middle of the neutral range and also reflects consolidation.
Wheat Prices
Wheat prices are lower on Friday in early trade. A rebound in the dollar helped weigh on prices. Wheat tumbled on Thursday and is consolidating some of the losses on Friday. Support on wheat futures prices is seen near the former breakout level at 469. Momentum has turned negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices. The RSI (relative strength index) is moving lower breaking through support which points to accelerating negative momentum.
This article was originally posted on FX Empire
