Tuesday's Grain Market Recap 12-20-2011

Published on: 14:38PM Dec 20, 2011

Grains finished stronger today continuing yesterday’s gains.  March corn was 6 cents higher at $6.07. January soybeans were up 7 ½ cents at $11.44 ½, and March wheat was up 8 cents at $6.07 ¾.

Outside markets were very favorable for grain prices today with the Dow Jones up over 300 points and the dollar down sharply.  Crude oil was over $3 higher as well.  For grains not much has fundamentally changed from yesterday to today so I would put most of the gains on outsides and technical support coming off of oversold levels.  Weather in Argentina is still forecasted to be hotter/drier and seems to continue to be providing support as well.

Technically we are right up against that trendline resistance in March corn (see chart).  A close above this could mean another move up towards the 50-day MA at $6.30 ¼.  For beans we are above the recent trendline resistance and coming off of oversold levels.  We could see the January contract edge closer to the 50-day which is at $11.79.

We are still expecting this week to be choppy and low volume trade as many traders will be out for vacation.  Until we get to the January reports there are not a whole lot of major fundamental news events to be expected.  We want to use these rallies to catch up on hedges if necessary.

Chart: March Corn

Red-50 day Blue-100 day Grey-200 day


Chart: January Soybeans

Red-50 day Blue-100 day Grey-200 day


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