Yahoo Finance Grain Prices Continue to Consolidate as Weather and a Slow Start to Planting Buoys Prices
Grain prices are consolidating at higher level, buoyed by recent cold weather which is expected to remain over most of the mid-west for the next 2-weeks according to a forecast from the National Oceanic Atmospheric Administration. The planting season has gotten off to a very slow start which has help all three major grains.
Corn Prices
Corn prices consolidated on Thursday and is trading in a tight range early in North American trade on Friday. Support is seen near the 10-day moving average at 3.82. 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 lower on Friday in very choppy trade this week. Weak export sales in soybeans weighed on prices. Support is seen near and upward sloping trend line at 1000 and then the 50-day moving average at 981. Resistance is seen near the 10-day moving average at 1031. Momentum is neutral as the MACD (moving average convergence divergence) index prints in the red with an increasing trajectory which points to consolidation.
Soybean export sales for the 2017/18 marketing year came in at 371.3 TMT, down 64% from last week and 63% less than the prior 4-week average. Sales for the 2018/19 crop year totaled 166.5 TMT, lifting combined sales to 537.8 TMT. Combined sales were down 75% week over week and below analyst estimates that ranged from 800-1,400 TMT. 2017/18 export commitments are 97% of the USDA forecast with 19 weeks to go and need to average 94 TMT weekly to meet projections. Current sales are 3% behind last year’s pace. Major purchases were reported for the Netherlands, Indonesia, and Mexico.
Wheat Prices
Wheat prices are up approximately 0,5% but have not been able to pierce through resistance near 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.
This article was originally posted on FX Empire
