3/13/18

Morning Bullet Points - 03/13/2018

GOOD MORNING—

MARKET HIGHLIGHTS

  • Markets trading higher overnight with general strength seen boosting prices at the end of the night session.
  • South American weather is little changed with rains in the 6-10 and 11-15 periods.
  • Wheat ratings yesterday were down 1% in KS to 12% good-to-excellent, up 1% in OK to 7% good-to-excellent, and up 3% in TX to 13% good-to-excellent.
  • Corn technically remains in its higher trend with the move overnight pushing the market back near the recent high.  Support for May at 3.80 and resistance 3.95.
  • Soybeans technically remain in correction mode with moving average resistance at 10.50.  Support is at 10.30 and 9.80.
  • Wheat technically bounced off lows yesterday and its correction may have run its course.  Support at 4.85 and resistance 5.00.
  • USDA reported 210,000 MT of corn to South Korea for 2017/18.

WEATHER        

  • Argentina has chances for rains this weekend and next week.  Overall, much of the crop is past the point of no return.
  • Brazil is catching scattered rains, but fieldwork should pick up.
  • US wheat areas are dry in KS and OK over the next couple of weeks.

OUTLOOK

  • The corn market continues to see very limited pullbacks as strong demand is leading to good buying interest on any small pullbacks.  I still think a bigger pullback is possible, as speculators that have been buying have had a pretty smooth and easy go of it.  Longer term, higher corn prices look to be in the cards.
  • Soybeans have seen a big pullback from their highs and are now bouncing.  With weakness in calendar spreads a lot of underwater spec. longs in the market, I do not think the correction is over.
  • Wheat bounced off support yesterday, so I believe that correction has run its course.  Wheat is the only market “the funds” are still short, so I think that is a supportive factor moving forward.

Fun Fact of the Day:  A hen with a white earlobe will always lay white eggs, whereas hens with red earlobes can lay brown, blue or green eggs. Araucana and Ameraucana breeds, also known as the "Easter Egg Chickens", famously lay varying shades of green and blue eggs

Want Updates?

Keep up with our market interpretation news and other important info. To receive text or email updates, simply click the button below and fill out the form.

Get Updates