It was a mixed trade at the Chicago Board of Trade this week. Soybean values were clearly the leader as prices surged over $.30 higher for the week. March soybeans had six consecutive sessions of higher highs and higher lows on the charts. The only technical disappointment in the soybeans was its inability to close above its 100-day moving average after trading above that level late in the week.
Soybeans were buoyed all week by concerns that the soybean crop in Southern Brazil and Northern Argentina continues to show signs of stress due to less than ideal moisture. Many technical traders have set their eyes on the $15.00-$15.25 level next week; however, this may be difficult without additional dryness concerns for Argentina.
The corn market had a moderately higher week with March corn closing $.15 ¼ above last Friday’s settlement. An impressive mid-week rally was the highlight as prices broke above trend line resistance drawn from the late November high and managed a close above the 100-day moving average for the first time since late October. Friday’s trade was cause for concern however, as profit taking to end the week left the charts with a hook reversal lower.
The wheat market was the albatross in trade this week, closing over $.10 lower while making new lows for the week in Friday’s trade. Lack of fresh demand and a late-week forecast for improved rains in the Southern plains were the main culprits for the weaker trade in the wheat market.
Corn and soybeans both had impressive weeks on the charts and has technicians looking at $7.60 in March corn and $15.25 in March soybeans. If these levels are to be realized it will need an influx of fresh fundamental news to help it along the way. We favor scaling into new crop sales over the next two weeks on any strength created by a rally in old crop values.
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