Corn, Soybeans continue Higher, Wheat lags behind
Apr 03, 2012
Corn & Soybean futures are higher this morning, with the old crop corn leading the way. The price action this morning is still a "hangover" from Friday's USDA stocks report.
May Corn futures are up 9c at $6.64 per bushel, while new crop Dec. corn is only up 2.5c at $5.474. Th July/Dec corn spread is now trading $1.10, up 30c from last week. Dec. Corn is still below the 50 day Moving average, keeping the trend negative. Fall and Spring weather has allowed for excellent field preparation up to this point. Yesterday's crop progress report showed corn to be 3% planted, less than anticipated but 1% above the 5 year average.
New crop soybeans failed to reach $14.00 this morning but did reach $13.97. Most analyst believe that $14.00 is major resistance for November soybeans. Soybeans are still in a positive trend but are in "overbought" territory. The market is still trying to buy acres from other crops in order to meet world demand. There is some talk of an early wheat harvest leading to a few double crop bean acres.
Wheat Futures are slightly under pressure due to rainfall throughout the southern plains in the past 24 hrs. There have been reports of 1 to 3 inches of rain across much of north Texas, Western Oklahoma and Kansas. This will only add to the negative tone for wheat futures as the crop looks great at this point. Resistance for July Chicago wheat is $6.70 and support is near $6.50.
Happy Trading,
Justin R. Lewis, M.B.A.
V.P. - KIS Futures, Inc
Direct: (877) 431-9805
Cell: (580) 335-1602
Twitter: @jlewis58
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