Overview:
Grain futures are still gasping for air after having the wind knocked out from yesterday’s bearish stocks report in corn. The chances are that some new crop corn found its way into the report because of early harvest. However, the USDA says that this was not the case. In the meantime, it will take a few days before the grains regain their footing. During the session, the funds sold 110 MB of corn, 25 MB of soybeans, and 20 MB of wheat. Right now, the key for corn is whether the funds come back to the trough once the selling subsides.
Corn:
December corn opened on its high today and fell the 30-cent limit to 465.75. While the pullback from 528.75 is extreme, the long-term trend is still up unless there is a close below 452. However, we have to upright the ship on the get go Monday morning. More will be mentioned in Monday’s update.
New crop sales should currently be at the 50 percent level.
Soybeans:
November soybeans closed below 1057 today, which threatens the long-term up trend. If there is follow through selling on Monday, we may be facing the multi-month or multi-year top that I have mentioned in previous comments.
Currently, new crop sales should be at the 45 percent mark. The unsold portion of the crop is protected with a long November 940 put.
Wheat:
December wheat is still searching for a bottom. We fell to 646.5 today and may trade lower to 630 before the sell-off from the September high at 757 and the August high of 868 are complete. Although one wave pattern shows the potential of prices climbing past 868, it is not on solid ground.
Currently, old crop sales should be at the 70 percent level.
Corn above 6? Soybeans above 12? And wheat breaking through the doldrums and getting out if its trading pattern? Want to know exactly when I expect that to happen and what the chances are. Find out what other producers already know, sign up for a FREE! trial subscription to our daily newsletters.