This information is provided by Archer Financial Services, Inc., 800-933-3996.
It was another solid week of gains in the grain markets this week, as corn closed the week $.28 higher, soybeans over $.35 higher and Chicago wheat prices finished the week nearly $.30 higher.
New crop values lagged the front months in all three commodities.
The beat goes on for the soybean market. The soybean rally began in earnest some 33 trading sessions ago. During that seven week timeframe, May soybean values closed higher 25 of the 33 trading sessions. May soybeans have rallied over $1.80 since late January, largely on declining crop prospects in South America, as well as stout demand for US soybeans, especially from China.
The soybean market has defied the calls from many in the trade, including myself, that a correction should be expected prior to the all-important March 30th stocks and acreage report. The last 5 years have seen have seen a late winter pullback on average of 11% in the soybean market.
If a setback is going to occur this year it seems as if it may begin from higher levels. Given the strong closes the last two trading sessions, I expect a stronger start to the week.
This is a market that should be watched closely for signs of a top. Perhaps, the best way to approach these markets at this time are with keenly placed sell stops that can be used to establish hedges before a larger price correction occurs.
(click charts to enlarge)