Grains continue to see technical selling pressure with May and July Chicago and Kansas City wheat making new contract lows, despite more favorable outside markets including the sharply lower dollar.
Darin Newsom, Sr. Market Analyst with Barchart, says improved weather forecasts for the Southern Plains are weighing on the wheat market and there are no weather issues for wheat in any area of the globe. Plus, Russia is selling wheat for under $200 per metric tons and under cutting everyone in the world.
Corn and soybeans continue to see fund selling after failing at the 20 day moving averages on the charts Tuesday and with the lower wheat market serving as an anchor. However,
The rain chances in the Midwest are also keeping a lid on row crop futures especially new crop futures. However, he says there is just a lack of bullish news for the grains, in particular the corn market. “There’s no reason for the corn market to rally at this point. Available stocks to use have grown considerably from last month and a year ago at this time and so we have ample supplies,” he says. Most of that supply is still sitting in farmers hands he adds.
Soybeans continue to see Brazil harvest pressure and Newsom says exports are lagging. “China is buying everything from Brazil,” he says. Soybean meal prices are also down over $100 per short ton from November with anticipation of Argentina’s bigger crop.
Cattle are consolidating under this week’s highs and Newsom says the futures are just waiting for cash to catch up. “It feels like this market is a bit top heavy. The charts are showing a pretty sideways pattern,” he says.
Outside markets are recovering after a down day Tuesday. Newsom says the DOW has back off of fresh highs and usually sees seasonal pressure during March. Gold has also backed off from record highs.
