Grain markets finished lower to sharply lower today as the charts and technical indicators looking much more negative following the recent break.
Weekly Price Summary
Grain Market News
Corn: Weekly Export Sales
Corn sales came in at 823 thousand tons, slightly above the level needed.
We are confident that sales will be disappointing mid-way through the marketing year so we need good sales now.
Soybeans: Weekly Export Sales
Soybean sales good at 545 thousand tons, that’s well below last year when we had very good sales into the February-April timeframe.
We are still well over double the level needed of 190 tons weekly.
Wheat: Weekly Export Sales
Wheat export sales had a nice improvement over the last 3 weeks up to 339 thousand tons and a little bit above the needed forecast.
Grain Market News
U.S. Drought Monitor
Next week we will hit March and that will begin the planting season in the deep south and work northward as we start to plant in the heart of the belt in April.
The monitor shows the eastern corn belt drought has been removed.
Arkansas and Missouri have also been basically eliminated from drought conditions.
Drought still remains in the plains and the far northwestern belt but the drought conditions continue to be eased in the northwestern belt.
Drought Monitor Class Change
You can see the northwestern belt continues to see improvement.
Anything in green or blue is where drought is improving.
We also see that the recent rain and snow has chipped into drought conditions in the far eastern plains and portions of the far west, central area.
7-Day Precipitation Forecast
Additional reduction of drought could take place in southern Minnesota and Iowa if the 7-day forecast is correct and in the eastern plains.
Unfortunately, things look dry in the far western plains.
Anywhere from 15-20 inches plus across eastern South Dakota and southern Minnesota has significantly added to the snow depth there.
There is a little bit of snow cover in northeastern Colorado but most of Kansas, southern Nebraska, and much of eastern Colorado does not have snow cover.
Yesterday’s Low Temperatures
Yesterday’s low temperatures below zero for much of eastern Colorado, northwest Kansas, and southern Nebraska.
March Corn Chart
Corn prices yesterday came down to the bottom of the trading range that’s been in place since January.
Today prices broke through and as the market broke the 6.61 level, layer after layer of sales stops was triggered.
Today’s low at 6.49, now very close to the multiple lows we saw in early January.
March Soybean Chart
Soybean prices pulled back today as well.
Earlier this week we were at the upper end of the range where we could make sales.
Today’s pull back allowed prices to come down to the chart support area.
If soybeans break through chart support, then we might start looking at 14.78-14.65 as a potential target.
March KC Wheat Chart
Wheat prices look a lot like corn where we had a sideways range in place and broke through support allowing sales stops to be triggered pushing wheat lower.
We closed at 8.41, 10 cents above the 8.31 lows posted earlier today.
This is no place to be making sales in wheat and technical indicators are getting close to the oversold level.
Questions or Comments