Market Information

The ag contracts remain in a largely sideways mode awaiting USDA’s WASDE report at noon tomorrow. The expectation is that they drop corn yield and production by a small amount and leave soybean numbers unchanged.

December corn failed once again to overcome 50-day moving average resistance at 509 yesterday. This morning the contract is forming a new bearish 10/50-day moving average cross. Yesterday, the two moving averages were 2 cents apart, this morning the two are a penny into the bearish move. Todays close will be important as to whether this new move will be confirmed. Without a stronger close reversing this trend, 487 remains the downside target.

November soybeans attempted to breakout above 20-day moving average resistance at 1304 yesterday but failed to complete the move. 10-day moving average support at 1293 did hold as support. longer term support is the 50-day moving average at 1264.

December wheat absolutely died yesterday after testing Fibonacci resistance at 704. The contract’s 10-day moving average at 689 did provide support. the contract is likely to test next support at 676. A close below 676 offers risk of a new leg lower. The 200-day moving average at 646 is long term support.

July wheat failed to overcome 50-day moving average resistance at 726 yesterday AND is poised to create a new bearish 20/50-day moving average cross near 726. The contract went on to close below Fibonacci support at 714 and is now tracking its 10-day moving average 711 which points lower. 700 is daily chart support and should be your sell stop.

Farmers planting wheat unpriced should advance sales here.