Yahoo Finance Grains Price Analysis for February 8, 2018
Analysts’ projections of USDA’s forecast of Brazilian soybean production range from 110 million to 112.5 million tones with an average of 111.2 million. The average, if realized, would represent a 1.2-million-tonne increase from USDA’s January forecast of 110 million and is 300,000 tons below expectations of 111.5 million tons. Expectations for USDA’s projection of Argentine soybean production range from 52 million to 56 million tons with an average of 54.06 million that would represent a 6,000-tonne-increase from USDA’s January forecast of 54 million tons.
Corn Prices
Corn prices continued Wednesday’s rebound moving higher in early trade on Thursday. Support is seen near the 10-day moving average at 3.614 per bushel. The first level of target resistance is seen near the August highs at 3.75 per bushel. Additional resistance is seen near the 2017 highs at 3.94. Momentum is accelerating higher as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices. The MACD also just generated a crossover buy signal.
Soybean Prices
Soybean prices appear to be stuck in a tight range trading near the 10-day moving average. Better weather conditions throughout Argentina are capping the upside in price action. Support on soybeans is seen near the February lows at 967. Resistance is seen near the downward sloping trend line at 1008. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero-index level with a flat trajectory which points to consolidation. The RSI (relative strength index) is moving sideways which reflects consolidation as it prints a reading of 55 which is in the middle of the neutral range.
Wheat Prices
Wheat prices whipsawed on Thursday in early trade initially moving higher following Wednesday’s breakout out above trend line resistance but was not able to hold elevated levels. Trader’s await Friday’s WASDE report which will be a market mover. Short-term support is seen near the 10-day moving average 4.50. Resistance is seen near a downward sloping trend line that comes in near 4.59. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero-index level with a flat trajectory which points to consolidation. The RSI (relative strength index) is moving sideways which reflects consolidation as it prints a reading of 63 which is in the middle of the neutral range.
This article was originally posted on FX Empire
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