Soybeans are seeing continued short covering and corn is following as the markets are oversold.
A 2% drop in crop ratings may be helping the corn but Allison Thompson with the Money Farm is not sure this is bottoming action yet.
The weather has been a focal point but frustrating for producers with the favorable Eastern Corn Belt forecast trumping the flooding in the Northwestern Corn Belt.
Areas of Iowa and Minnesota got additional rain Monday night which will only add to flooding damage in those areas.
Thompson thinks with the funds increasing their short positions last week in the grains they may be taking some profits heading into the holiday.
Corn and soybeans are running into chart resistance, which is around $11.25 to $11.35 on November soybeans and $4.25 to $4.30 on December corn.
Yet, if the market is able to get through those levels she thinks its a good selling opportunity.
Wheat fails to see follow through after the rally Monday but she is more confident that market is trying to forge a low.
“Typically we see the winter wheat market bottom when the harvest gets past 50% and we got confirmation of that yesterday from USDA with harvest pace at 54%,” she says.
Plus, there are still lingering weather issues with the crop globally in the Black Sea.
Spring wheat is starting to also run into chart resistance around $6.50.
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