Daily Grains Analysis – Wheat Breaks Out, Corn and Soybeans Follow

A quick up move could generate another round of short covering.  Export sales were very strong for wheat but in line with expectations for both corn and soybeans.

Corn Prices

Despite the move, higher sales during the latest week were softer than expected. Weekly corn export sales for the 2017/18 marketing season were down 23% from the week prior. New crop sales totaled 85.1 TMT, lifting combined sales to 1,531 TMT.  Total sales exceeded analyst expectations that ranged from 850 to 1,200 TMT.

Corn prices breaking out, moving away from trend line resistance that now supports near 3.55 per bushel. Support is seen near the 10-day moving average at 3.53. Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal.  The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.

Soybean Prices

Soybean oil 2017/18 export sales were down 58% from last week and 47% less than the prior 4-week average. Total sales were within analyst expectations. Major purchases were made by Mexico, the Dominican Republic, and Costa Rica.

Soybean prices are grinding higher. Support is seen near the 10-day moving average at 982 per bushel.  Resistance for soybeans is seen near a downward sloping trend line that comes in near 10.05 per bushel. Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal.  The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.

Wheat Prices

Wheat prices are breaking out from trend line resistance and should continue to move higher.  Wheat export sales for the 2017/18 marketing year totaled 427,200 metric tons, up 179% from last week and 105% more than the prior 4-week average. Combined sales were up 138% from last week and exceeded analyst expectations that ranged from 175 to 400 TMT.

Wheat prices are moving higher after breaking out above trend line resistance that is now short-term support near 4.33.  Additional support is seen near the 10-day moving average at 4.29. Target resistance is seen near the September highs at 4.62. Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal.  The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.