Closing Market Comments February 3, 2022

Today’s Prices

Grain markets finished mixed again today as there is no strong story to push markets sharply in either direction.

Weekly Price Summary

Grain Market News

South America 24-Hour Precipitation

Argentina’s growing area had some rain that was an inch or better but there were also areas that completely missed out on this rain event.

Argentina is expecting another dry stretch for 8-9 days, but soil moisture is better now.

South America High Temperatures Yesterday

The system from the lats couple for days is finally knocking temperatures back after 90s and 100s earlier this week.

Temperatures are now ack into the 80s.

Brazil’s growing region is in the 80s.

South American Precipitation Forecast

The forecast does show the first week of dryness in Argentina with a little bit of rain in the second week of the forecast.

Brazil continues to have moderate rains in almost all areas.

U.S. Drought Monitor

Virtually everything east of the Mississippi river is now drought free.  

The central belt is seeing much better precipitation than we did last fall while drought remains out in the plains.

12-Week Drought Monitor Change

12-Weeek Drought Monitor Change

Grain Market News

Biodiesel and Renewable Production Capacity

March Corn Chart

Corn prices look like they are starting to go lower off the highs posted earlier this week.

We did close slightly higher today, but it was an outside day down.

Overall, the chart look like it is turning down which has turned the technical indicators down as well.

The corn market does need some bullish news next week to prevent the market slipping back into chart support at 6.60-6.55.

March Soybean Chart

Soybean prices have been chopping back and forth this week.

That narrow range is within the middle of an uptraining channel that represents the intermediate uptrend.

Overhead resistance is at 15.48, the highs posted in mid-January.

Initial chart support at the uptrend line around 16.10.

March KC Wheat Chart

Wheat prices are in an uptrend off the lows from two weeks ago at 8.11.

Technical indicators have gotten extremely overbought which could signal a correction at any time.

Pulling back to the moving averages around 8.45-8.50 would not be a surprise.

Questions or Comments