This information is provided by Archer Financial Services, Inc., 800-933-3996.
Agricultural commodities ended the week with solid gains across the board. Gains in both corn and soybeans were led by old crop futures, while wheat prices were up nearly $.30 in both old and new crop contracts. Soybeans continue to be the upside leader with old crop futures up nearly $.50 per bu. Lower production estimates out of South America, along with increased Chinese demand is providing the underlying support.
Spot futures registered a solid close over the $13.00 level this week for the first time since Sept-2011. For the near future, I’d expect spot futures to remain in a $13.00 - $14.50 range that they were in from Dec-2010 thru Sept-2011. Spot corn prices ended the week up $.18 per bu. and above the $6.50 level for the first time since early Nov-2011. Strong resistance remains just above the market at $6.65. Tight farmer holdings along with spillover support from surging soybean prices is providing underlying support.
Limiting further gains is slowing demand and improved crop prospects for the Brazilian corn crop. Wheat prices jumped on support from the soybean complex as well as fund buying, liquidating a portion of their record short position in Chicago wheat futures. Spot wheat prices also ended the week at their highest levels since Sept-2011.
(click the charts below to enlarge)