Grains Give Back Some of Last Weeks Gains
Mar 19, 2012
Soybeans rallied early in the session only to sell off approaching the close. Below is a 5 minute May Soybean chart taken from the Firetip platform. You can see from the chart that we traded a range around the 50% retracement of the morning's rally, before moving lower. Soybeans were the leader to the upside last week after further downgrades to Brazilian production and continued export strength supported the market. May soybeans are now at 75 on the 27 period RSI, keep an eye on this overbought bean market as we approach the March 30th report.
Corn traded near 670 early in the session before finding a rage around 666 as we approached the close. We saw the market turn sharply lower in the last 10 minutes of today's action, trading down to 662 before posting a last trade of 662 1/2. Allendale came out with their corn acreage expectation, and have the 2012 crop estimated at 95 million acres. This was lower than Informa's expectation for 95.5 million acres, but it is clear the market is expecting a lot of acres to go to corn this spring. We will be tweeting @GrainTV as other analysts come out with their findings approaching the March 30th report.
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