Grains are quiet and chopping on both sides of steady on Wednesday after testing the top side of recent trading ranges.
Wheat was higher for four days in a row on weather concerns in the U.S. and globally plus deteriorating crop conditions. However, funds were also covering short positions and the market was seeing corrective buying.
Meanwhile, corn and soybeans rallied for three days consecutively on short covering and following wheat.
With the exception of Kansas City wheat which got above the 100-day moving average, the grain markets have all been testing the upper end of their recent trading ranges. So, is the short covering rally and fund buying just about done?
Vince Boddicker, Farmers Trading Company, says it might be as funds generally buy in three-day waves and if grains can’t break to new highs the markets may consolidate.
However, he does admit the crop problems in Argentina for both corn and soybeans and a drier forecast for Brazil may provide underlying support.
Rain chances in the next few days will stop the planters from rolling but Boddicker says it is too early for any concerns about delays yet.
Livestock have traded 2-sided early.
Cattle are consolidating after also hitting chart resistance, while along with hogs.
