Grains end higher Thursday with technical buying and short covering by the funds.
DuWayne Bosse, Bolt Marketing, says May corn closed above the 20-day moving average which also triggered some speculative or chart based buying and he is hopeful that is the catalyst needed to finally put a low in corn prices.
The grain markets, but in particular soybeans, also got help from better China economic news and lower Brazil crop estimates.
Chicago wheat hit new contract lows with confirmation of the China cancellation of 4.6 million bushels of soft red winter wheat and then bounced with the other two classes and following corn and soybeans.
All the grains saw some positioning ahead of tomorrow’s WASDE but Bosse says whether corn and soybeans can build on the strong day Thursday is what USDA does with South American production numbers. His fear is USDA will continue to lag the private estimates for fear of having to revises the crop and Brazil acres in futures reports. “USDA has had to revise the soybean crop the last two years due to higher production and acres.”
So the big question is if the grain markets are putting in lows how much of a rally can be sustained?
Bosse, has that answer and also covers the mostly higher action in cattle and hogs.
