Grain and oilseed markets were sharply lower at the close. March corn closed 14 ¼ cents lower at $7.37 ¼, January soybeans down 19 cents at $14.72 ¼, and March wheat down a penny at $8.61.
After some major technical levels were breached markets turned lower this morning. January soybeans touched their 50 day moving average and had a sharp selloff around 7:30 am. At about the same time corn broke below its 50 day moving average and short term range which triggered sell stops.
January Soybeans (50 day moving average touched and failed)
March Corn (50 day moving average breached – Red line)
The USDA announced another sale of soybeans to China this time for 115,000 MTs. Demand remains strong and we thing downside moves are somewhat limited with current conditions.
Weather in Argentina is starting to improve and the Brazilian soybean production is expected to be strong. We expect choppy holiday trade to continue. We want to watch soybean export demand for direction while we expect corn demand to remain dismal. Corn option volatility is starting to rise but still relatively cheap before the report in our opinion. Have a great weekend!!
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