by Tony Cholly
Corn: The corn market may have already priced in late plantings, and despite issues in the north, we are seeing healthy pull backs in Corn. We are 55 cents off of April 29th highs and has corrected any overbought conditions we were seeing, although now we are flirting with over sold conditions. The weather pattern seems to be shifting to more “normal”, which means the corn crop should get planted, just a little late. At this time last year, we were 64% planted compared to only 22% this year.
Technically speaking, momentum studies are trending lower which signals a larger move lower if support levels can be broken. Resistance comes in at $7.85 while support is at $7.65 and $7.55 below that.
Soybeans: The soybean market has been in a sharp downtrend off of the 4/22 highs and the shift in better planting weather has been enough to trigger long liquidation selling. While the market is oversold, it will most likely take some sort of bullish news to support the market and put in a short term low. Soon enough, the grain markets will begin pricing in weather premium to prepare for potential problems during the growing season.
Technically speaking, the action is bearish and the market is signaling a major downside correction is in order. Resistance for July beans comes in at $16.25, with $15.40 the next level of support.