Soybeans and Corn Rally from Contract LowsPosted 09/21/2018 8:53AM CT |
Soybeans – November soybeans traded higher both Wednesday and Thursday after starting the week trading lower to new contract lows. The market was unable to close above resistance at 850 after trading as high as 855^0 on Thursday. Despite the most recent tariff announcements, support was seen on reports that the US and China are still willing to talk about an agreement. Demand comes in from Argentina’s crushing industry who is buying from the US and exporting their own supply to China. It looks like come October China may run out of other alternatives and may have to come to the US to cover some of their needs. Momentum studies are increasing and could support a continuation higher on a close over resistance. Support comes in at 829^0 and then at the lows of 813^0. Resistance is at 850^0 and then 865^0 with a close over 850^0 needed to continue the trend to the upside.
Corn – December corn rallied to 356^2 on Thursday before closing at 352^2, its highest level since the markets drop on the September USDA report. Support came from good export sales and the market saw an increase in call buying on Thursday with talks that the USDA may revise their yield estimate lower in the October report. Momentum studies have crossed up from over sold levels and support a move higher. Resistance comes in at 356^0 and 366^4 with support at 346^6. Trade unable to break yesterday’s high will revert back down to contract lows while a close over 359^4 will continue the reversal to the upside.